Make-to-order or make-to-stock decision by a novel hybrid approach

This paper presents a strategic decision-making structure to determine whether a particular product should be produced under make-to-order (MTO) or make-to-stock (MTS) strategy. A novel hybrid methodology consisting of strengths, weaknesses, opportunities and threats (SWOT) analysis and analytic hierarchy process (AHP) is proposed. Utilizing AHP in SWOT analysis diminishes one of the main deficiencies of this strategic approach that is the restriction of employing quantitative calculation to evaluate the factors that affect the decision. AHP method improves the quantitative information basis of strategic decision-making processes. The traditional AHP requires exact judgments, but due to the complexity and uncertainty involved in real world decision problems, it is sometimes unrealistic or even impossible to require exact judgments. Consequently, a commonly used decision-making method, fuzzy analytic hierarchy process (FAHP) is suggested. FAHP’s connection to SWOT yields a novel hybrid method for partitioning of MTO/MTS products. At the end, the proposed fuzzy AHP-SWOT methodology is validated through a real case study.     

Integrating analytical network process and fuzzy logic to prioritize the strategies - A case study for tile manufacturing firm

SWOT analysis is the most important tool for decision makers in strategic management process, because it enables the managers to discover and collect the facts that resulted from internal and external analysis. This analysis can be a good base for strategy formulation, but it is not non-defect. It includes no means of analytically determining the importance of factors or assessing the fit between SWOTS factors and decision alternatives and is mainly based on the qualitative analysis. Many researchers develop different techniques to quantify the SWOT analysis, but these methods are not comprehensive. In this study, we develop a fuzzy method model for quantitative weighing of SWOT strategies. The decision maker’s imprecise information is regarded by fuzzy numbers in this model. To consider dependency among factors and sub-factors, we use ANP technique in our research. We demonstrate our model with a case study example and compare results of our research with prior research.     

Development of a fuzzy ANP based SWOT analysis for the airline industry in Turkey

Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis has been widely used to evaluate alternative strategies in order to determine the best one for given business setting. This study aims at providing a quantitative basis to analytically determine the ranking of the factors in SWOT analysis via a conventional multi-criteria decision making method, Analytic Network Process (ANP). The ANP method is preferred in this study because of its capability to model potential dependencies among the SWOT factors. The study presents uniqueness in the way it incorporates inherent vagueness and uncertainty of the human decision making process by means of the fuzzy logic. The proposed SWOT fuzzy ANP methodology was implemented and tested for the Turkish airline industry. The results showed that the SWOT fuzzy ANP is a viable and highly capable methodology that provides invaluable insights for strategic management decisions in the Turkish airline industry, and can also be used as an effective tool for other complex decision making processes.     

An integrated approach to investment appraisal for advanced manufacturing technology

This article presents an integrated approach combining the strategic, economic, and analytic justification methodologies to evaluate the tangible and intangible benefits for the selection of advanced manufacturing technology (AMT). A strategic approach called the manufacturing map is applied to determine the consistency among the proposed technology, the company objectives, and the manufacturing strategies. An analytic evaluation technique called the analytic hierarchy process (AHP) is also introduced. During the AHP analysis, an economic evaluation tool called the state-price net present value (SP-NPV) is applied to provide financial data. Finally, a budget/network chart is employed to monitor and outline the project in greater detail. © 1999 John Wiley & Sons, Inc.     

Modification of the fuzzy analytic hierarchy process via different ranking methods

The use of fuzzy set theory in the analytic hierarchy process (AHP) has gained popularity in recent years as part of the multiple criteria decision-making (MCDM) process to more realistically reflect human judgment. However, due to the nature of fuzzy calculations, this situation imposes more computational load. The aim of this study is to propose methods for obtaining accurate weights from fuzzy pairwise comparison matrices with the least amount of computational load possible. In this context, two different fuzzy AHP (FAHP) methods based on fuzzy numbers ranking methods have been proposed and these proposed methods are compared with commonly accepted FAHP methods. Magnitude-based fuzzy AHP (MFAHP), which is one of the proposed methods, has outperformed all other methods according to accurate weight and computational load. Although the other proposed method, called the total difference-based fuzzy AHP (TDFAHP), gave better results than the frequently used Chang's fuzzy extent analysis method, it could not produce more accurate weight results than many other methods in general. But performance analysis shows that it is as good as the MFAHP in terms of computational load.     

Using a hybrid multi-criteria decision aid method for information systems outsourcing

An ever-increasing trend in today's firms is to exploit outsourcing for those information systems (IS) functions deemed to be outside the company's core competence. Given the multi-attribute nature of IS outsourcing decision, this paper argues that six factors, including economics, resource, strategy, risk, management and quality, should be considered for outsourcing decisions, and proposes the use of analytic hierarchy process (AHP) and preference ranking organization method for enrichment evaluations (PROMETHEE) as aids in making IS outsourcing decisions. The AHP is used to analyze the structure of the outsourcing problem and determine weights of the criteria, and PROMETHEE method is used for final ranking, together with changing weights for a sensitivity analysis. It shows by means of an application that the hybrid method is very well suited as a decision-making tool for the IS outsourcing decision. Finally, potential issues for future research are presented.     

A SCOR based approach for measuring a benchmarkable supply chain performance

Performance measurement can only help to identify the problems existing in the current supply chain, while it is helpless in exploring the root causes of these problems and thus choosing corresponding actions to improve supply chain performance. The conflict between the top-down strategy decomposition and the bottom-up implementation process is serious. Therefore, in order to overcome the above issues, it is very necessary to link strategic objectives to operations, which could help managers, especially those operating at a strategic level, to know more operational mechanism of supply chains. In this study, an integrated approach which employs analytic hierarchy process (AHP) and technique for order preference by similarity to ideal solution (TOPSIS) together is proposed for the linking strategic objectives to operations. Supply chain operations reference model is used to model the linkage of the strategic objectives and operational metrics in a hierarchical way. The AHP is used to analyze this metric hierarchy and determine weights of the metrics, and TOPSIS method is used to make a normalization of metric values having different units, so a comparison will be available. Proposed approach is applied to a problem of decision making process in a manufacturing company. Company managers found the application and results satisfactory and implementable in their decisions.     

Consolidating SWOT analysis with nonhomogeneous uncertain preference information

SWOT analysis is an important support tool for decision-making, and is commonly used to systematically analyze organizations’ internal and external environments. However, one of its deficiencies is in the measurement and evaluation of prioritization of the factors and strategies. This paper is aimed to present a novel quantified SWOT analytical method based multiple criteria group decision-making (MCGDM) concept, in which the priorities of SWOT factors and groups are derived by multiple decision makers (DMs) with nonhomogeneous uncertain preference information (NUPI), such as interval multiplicative preference relations, interval fuzzy preference relations, and uncertain linguistic preference relations. In this method, the SWOT analysis provides a basic frame within which to perform analyses of decision situations, in turn, MCGDM methods assist in carrying out SWOT more analytically and in elaborating the results of the analyses so that SWOT factors and groups can be prioritized with respect to the entire SWOT. The uniform and aggregation of the NUPI and the derivation of priorities for SWOT groups and factors are investigated in detail. Finally, an example is to validate the procedure of the proposed method.     

Multimedia mobile application e-commerce service satisfaction

Previous research on e-commerce through multimedia mobile applications primarily focused on the relationships between e-service factors and positive customer behavior. However, these studies did not consider the consumer purchasing decision process sufficiently to develop firms’ strategic priorities in the context of e-commerce services through multimedia mobile applications. To fill this gap, we conducted a choice-based conjoint analysis (CBCA) to identify the preferences for each attribute and the interaction effects between each pair of attributes related to the purchasing decision, and used an analytic hierarchy process (AHP) analysis to calculate the overall priorities for every sub-criterion and partial priorities for each main criterion. The main findings from the integrated CBCA and AHP are that consumers must be able to fulfill their most basic needs through multimedia mobile applications’ e-commerce service, e-commerce service providers using multimedia mobile applications should enhance their existing advantages to complement their shortcomings, and e-commerce service providers besides social commerce operators should change their business structures to adapt to the new e-commerce environment. We also discuss the main contributions and implications to improve e-commerce service satisfaction and strategic decision-making.

     

基于“功能驱动”和“差异驱动”原理的灰关联贴近度决策方法

针对决策过程中指标权重确定问题, 在分析基于“功能驱动”原理和“差异驱动”原理的主客观赋权方法优缺点的基础上, 利用灰色关联度和逼近理想解方法(TOPSIS) 的思想, 考虑各指标间可能产生相互影响, 以数据包络分析(DEA) 和层次分析法(AHP) 为辅助模型, 构造一种基于面积的度量方法, 并以两个方案相邻指标之间构成的多边形面积为关联系数的灰色关联贴近度决策模型, 分别计算各方案的灰色关联贴近度, 使得权重的确定能够同时反映主客观要求与变换趋势的一致性. 最后通过实例分析表明了所提出方法的科学性和实用性.

     

General and specific formalization approach for a Balanced Scorecard: An expert system with application in health care

The Balanced Scorecard (BSC) presents the essentials of strategic and performance management in clear, straightforward manner which is also usable in health care. If a BSC for a clinical department is an agreement, the first question to consider is the method by which it can be ascertained whether a strategy has been accomplished. There are many different techniques like AHP (analytic hierarchy process) and fuzzy systems to calculate indices.However, how does a formalized mathematical groundwork looks like that integrates current approaches and is still general enough to incorporate future expert systems with applications?The purpose of this paper is the formalization of BSC evaluation by respecting current research. The formalized expert system was implemented in an information system for health care management.     

A hybrid approach of goal programming for weapon systems selection

Because weapon systems are perceived as crucial in determining the outcome of a war, selecting weapon systems is a critical task for nations. Just as with other forms of decision analysis involving multiple criteria, selecting a weapon system poses complex, unstructured problems with a huge number of points that must be considered. Some defense analysts have committed themselves to developing efficient methodologies to solve weapon systems selection problems for the Republic of Korea’s (ROK) Armed Forces. In the present study, we propose a hybrid approach for weapon systems selection that combines analytic hierarchy process (AHP) and principal component analysis (PCA) to determine the weights to assign to the factors that go into these selection decisions. These weights are inputted into a goal programming (GP) model to determine the best alternative among the weapon systems. The proposed hybrid approach that combines AHP, PCA and GP process components offsets the shortcomings posed by obscurity and arbitrariness in AHP and therefore can provide decision makers with more reasonable and realistic decision criteria than AHP alone. A case study on weapon system selection for the air force demonstrates the usefulness and effectiveness of the proposed hybrid AHP–PCA–GP approach.     

An integrated approach of AHP and DEMATEL methods in evaluating the criteria of auto spare parts industry

This study uses both analytic hierarchy process (AHP) and decision-making trial and evaluation laboratory (DEMATEL) methods to evaluate the criteria in auto spare parts industry in Taiwan. Traditionally, AHP does not consider indirect effects for each criterion and assumes that criteria are independent without further addressing the interdependence between or among the criteria. Thus, the importance computed by AHP can be viewed as short-term improvement opportunity. On the contrary, DEMATEL method not only evaluates the importance of criteria but also depicts the causal relations of criteria. By observing the causal diagrams, the improvement based on cause-oriented criteria might improve the performance effectively and efficiently for the long-term perspective. As a result, the major advantage of integrating AHP and DEMATEL methods is that the decision maker can continuously improve suppliers’ performance from both short-term and long-term viewpoints.     

层次分析法在网络用户信任度评价模型中的研究

随着计算机技术和网络的发展,充分挖掘用户之间信任关系成为各大网络运营平台的关注热点.本文提出利用用户信息作为评价指标构建用户信任度评价模型的方法,并将层次分析法应用于模型构建,以缓解多指标权重设定中人为主观因素干扰问题.文章介绍了层次分析法工作流程并给出了用户信任度评价模型中各评价指标的权重,层次分析法的引入使得用户信任度评价模型更为科学、简洁、有效.     

Supplier selection and order allocation based on fuzzy SWOT analysis and fuzzy linear programming

Supplier selection is a multi criteria decision-making problem that comprises tangible and intangible factors. The majority of previous supplier selection techniques do not consider strategic perspective. Besides, uncertainty is one of the most important obstacles in supplier selection.In this paper, quantified SWOT is applied in the context of supplier selection for the first time. SWOT (Strengths, Weaknesses, Opportunities and Threats) is one of the most well-known techniques for conducting a strategic study. In addition, the fuzzy logic and triangular fuzzy numbers are integrated with SWOT analysis – as a novel innovation – to deal with vagueness of human thought. SWOT analysis can consider both qualitative and quantitative criteria. The managers can understand the position of suppliers in a competitive environment with a glance at SWOT matrix. Moreover, a fuzzy linear programming model is proposed to determine how much should be purchased from each supplier. It is supposed that the demand is a fuzzy number. Besides, the capacity of warehouse is considered as a constraint. A case study is utilized concurrently to show the efficiency of the proposed model.     

Outsourcing non-core assets and competences of a firm using analytic hierarchy process

This paper provides a structured framework for evaluating the firm assets and competences using a two stage analytic hierarchy process (AHP). One distinctive characteristic of this framework is that relationship between firm competence and intellectual assets is established and a set of six attributes related to uniqueness and collectiveness are identified to help identify the core competence of a company. Using a balance score card type financial and non-financial procedure, these attributes are subsequently employed for isolating the competence and tangible and intangible assets of a UK manufacturing company. Our analysis illustrates that the intellectual assets such as marketing knowledge, design skills, manufacturing skills and customer relationship those usually ignored within the balance sheet of a company have been perceived relatively important than the tangible assets such as space and equipment. We argue that results based on AHP-based quantitative analysis would help a company to make more informed strategic management decision concerning further investment for competences and key assets development, and outsourcing non-core assets and competences.     

Data envelopment analysis for weight derivation and aggregation in the analytic hierarchy process

Data envelopment analysis (DEA) is proposed in this paper to generate local weights of alternatives from pair-wise comparison judgment matrices used in the analytic hierarchy process (AHP). The underlying assumption behind the approach is explained, and some salient features are explored. It is proved that DEA correctly estimates the true weights when applied to a consistent matrix formed using a known set of weights. DEA is further proposed to aggregate the local weights of alternatives in terms of different criteria to compute final weights. It is proved further that the proposed approach, called DEAHP in this paper, does not suffer from rank reversal when an irrelevant alternative(s) is added or removed.     

基于FAHP的深水半潜式平台钻井设备选型

钻井设备选型的合理性关系着平台的总体性能。将模糊层次分析法(FAHP)应用于深水半潜式平台钻井设备的选型,以钻井泵为例,综合考虑技术性和经济性两方面建立钻井泵选型的评价模型。分别利用 FAHP 和AHP计算出各因素的权重,对备选方案进行综合评价。结果表明,模糊层次分析法能有效地解决钻井设备选型问题。通过对比分析两种方法的结果,总结出二者的适用范围,为决策者综合运用两种分析方法奠定了基础。     

Weapon selection using the AHP and TOPSIS methods under fuzzy environment

The weapon selection problem is a strategic issue and has a significant impact on the efficiency of defense systems. On the other hand, selecting the optimal weapon among many alternatives is a multi-criteria decision-making (MCDM) problem. This paper develops an evaluation model based on the analytic hierarchy process (AHP) and the technique for order performance by similarity to ideal solution (TOPSIS), to help the actors in defence industries for the selection of optimal weapon in a fuzzy environment where the vagueness and subjectivity are handled with linguistic values parameterized by triangular fuzzy numbers. The AHP is used to analyze the structure of the weapon selection problem and to determine weights of the criteria, and fuzzy TOPSIS method is used to obtain final ranking. A real world application is conducted to illustrate the utilization of the model for the weapon selection problem. The application could be interpreted as demonstrating the effectiveness and feasibility of the proposed model.     

An effectiveness measurement model for knowledge management

The aim of this study is to develop a model for the measurement of the effectiveness of knowledge management in Taiwanese high-tech enterprises. Following a survey of the relevant literature on the subject, the study describes the construction of the model – including the opinions of specialists, scholars, and practitioners of knowledge management practice among Taiwan’s high-tech firms, the use of focus groups, the application of analytic hierarchy process (AHP), and a questionnaire analysis of qualitative and quantitative methods. The study summarizes the experts’ opinions, selects the measurement indicators, and calculates the weightings of dimensions and items. An empirical study is then conducted to test the validity and reliability of the model, and its suitability for improving the measurement of knowledge management effectiveness in high-tech firms.