Strategic Decision Making for Outsourcing Information Systems with a Fuzzy Multi-criteria Decision-Making Approach

Author(s):  
Mahmoud Modiri ◽  
Mohammad Dashti

Today, IS supplier selection is one of the most critical steps in the outsourcing process; the success of outsourcing is highly dependent on the selection of IS suppliers. This paper proposes a new hybrid fuzzy multi-criteria decision-making (MCDM) model, which uses decision-making trial and evaluation laboratory (DEMATEL) technique, analytic network process (ANP), and Vlse Kriterijumska Optimizacija I Kompromisno Resenje(VIKOR) to evaluate four potential suppliers using seven factors and five decision makers using a realistic case study. the results showed that Service support is importance for outsourcing. The proposed model can help practitioners improve their decision making process.

2021 ◽  
Vol 20 (1) ◽  
pp. 119-130
Author(s):  
Dana Marsetiya Utama ◽  
Bianca Maharani ◽  
Ikhlasul Amallynda

Currently, companies are required to improve supply chain performance. One of the main problems in the supply chain is the proper supplier selection. Supplier selection has an essential role in improving supply chain management performance. Supplier selection requires the proper criteria. However, the relationship between criteria is rarely considered in the selection of suppliers in the textile industry. This study tries to propose integrating the Decision Making Trial and Evaluation Laboratory (DEMATEL) and the Analytic Network Process (ANP) for supplier selection in the textile industry. Both methods are multi-criteria decision making (MCDM) tools DEMATEL is used to assess the relationship between criteria. Furthermore, ANP is used to evaluate and weigh the importance of criteria and suppliers. A case study was carried out in a textile company located in Indonesia. The results show that this procedure can identify the relationship and effect of each criterion. The results show that the product price criteria are the criteria that have the most significant weight. The criteria for conformity to specifications and consistency of quality are in second and third place. Finally, suppliers are selected based on weight assessment on each criterion by ANP.


2018 ◽  
Vol 22 (3) ◽  
pp. 1549-1561 ◽  
Author(s):  
Davor Vujanovic ◽  
Vladimir Momcilovic ◽  
Milos Vasic

In this paper is researched how to achieve an effective fleet maintenance planning in transport companies, which contributes in increasing the fleet energy efficiency and in achieving the companies? goal. Within the fleet maintenance planning, managers have to make the right decisions on the selection of vehicle service centers in the region where the maintenance work will be realized. The mentioned decision is affected by a number of different interdependent factors (criteria). Based on a survey, relevant factors (criteria) were defined. As defined factors are interdependent and differently influence the mentioned decision, an approach of decision making trial and evaluation laboratory (DEMATEL)-based analytic network process called DANP was applied. In this respect, authors propose a hybrid multi-criteria decision making model. The proposed model was applied in the companies to demonstrate how effective their managers are in the maintenance planning and how this effectiveness influences the fleet energy efficiency and fulfilment of companies? goal.


Author(s):  
S. Nallusamy ◽  
D. Sri Lakshmana Kumar ◽  
K. Balakannan ◽  
P.S. Chakraborty

In manufacturing industry selection of right supplier (s) is one of the challenging activities. Supplier selection is the method of determining the appropriate suppliers to provide the right quality of products, at the right quantities, at the right price in the right time. During the last ten years based on the changes in the business sector, Multi-Criteria Decision Making (MCDM) has been one of the fastest growing areas. By choosing the best supplier, the companies can increase their productivity and also competitive advantage. In the earlier period, several methods have been proposed to solve the supplier selection problem, such as the linear weighting methods, the analytic network process, total cost approaches and mathematical programming techniques. Although the linear programming methods are simple, they are not accurate and more variations exist. So the latest multi-criteria decision making tools such as Analytical Hierarchy Process (AHP), Fuzzy Logic (FL) and Artificial Neural Network (ANN) are deeply studied. While selecting the best supplier, many criteria are involved. The criteria may be different for different approach. The decision makers always express their preferences on alternatives or on the attributes of supplier which can be used to help rank the supplier and choose the enviable one. In this article, application of fuzzy logic and AHP are discussed with case-studies and also presented the discussion about implementation of ANN for supplier selection.


2013 ◽  
Vol 1 (1) ◽  
pp. 153 ◽  
Author(s):  
Massoud Kassaee ◽  
Mojtaba Farrokh ◽  
Hassan Hosseini Nia

Vendor selection is an important issue in most company based on many criteria that includes ambiguous or uncertain data. Therefore in the study, it is essential that fuzzy approach is employed for coping with the uncertainty and achieving more accurate results. In other hand, the relationships between criteria and sub-criteria are complex; for encompassing the complexity, most conventional decision models cannot help us explain the interrelationships among the criteria. In this paper, a hybrid multi-criteria decision making (MCDM) technique is proposed to determine the structural relationships and the interrelationships among all the evaluation’s dimensions based the Analytic Network Process (ANP) method determining appropriate weightings to each sub-criterion. Then alternatives priority should be determined which can aid the decision making. For the purpose, The TOPSIS (technique for order performance by similarity to idea solution) is used to rank all competing alternatives in terms of their overall performances. In MCDM studies and research, applying TOPSIS in ranking alternatives has recently been customary because of its advantages. In the end, a case study of an Iranian company, in automotive industry, is demonstrated to illustrate the proposed model can improve solving of vendor selection problem.


2017 ◽  
Vol 7 (1) ◽  
pp. 100
Author(s):  
Wen-Tsung Wu ◽  
Chie-Bein Chen

This study investigates the decision-making issues in the selection of destinations for large-scale exhibitions by the cultural and creative industry. We use the Rubber Duck China Tour by the Dutch artist Florentijn Hofman as an example and adopt the analytic network process technique to evaluate destination options for the exhibition, as well as to explore the impacts of the evaluation of destination feasibilities on exhibition investment. The results show that power, a high benefit-cost ratio, first-tier cities, integration with local communities, and a rich and interesting theme are the top five factors that curators should consider when planning exhibitions. Considering the priority among cities of various tiers, first-tier cities are the most favorable, followed by fourth-tier, third-tier, and second-tier cities. The decision-making model provides curators with a reliable reference for selecting destinations for future exhibitions.


2015 ◽  
Vol 735 ◽  
pp. 41-49 ◽  
Author(s):  
Arash Azaryoon ◽  
Musa Hamidon ◽  
Ashraf Radwan

In this study, a knowledge-based system has been developed for selection of non-conventional machining processes using a hybrid multi-criteria decision making Method. This approach is a combination ofDEMATEL(Decision Making Trial and Evaluation Laboratory),ANP(Analytic Network Process) andVIKOR(VlseKriterijumska Optimizacija I Kompromisno Resenje, in Serbian, meaning Multi-criteria Optimization and Compromise Solution) methods which evaluates different types of quantitative and qualitative measures of performance and economic factors, and ultimately provides a set of capable processes in order of priority. Twelve machining processes, eight group of workpiece material and eighteen shape features have been investigated in this study. What separates this approach from others is that, this hybrid method considers the influence of factors in the network relation map as well as their relative importance. Moreover, unlike other popular ranking methods such as TOPSIS (Technique for Order Preference by Similarity to the Ideal Solution), it is not just based on two reference points, namely ideal and inferior points; instead, it proposes a compromise solution and not just a single ranking score. Observations have shown that the developed system works satisfactorily, yields acceptable results and makes accurate decisions as well. It also provides a comparative study among the alternative processes by utilizing graphical features for better analysis and judgment of acceptable alternatives.


2020 ◽  
Vol 12 (10) ◽  
pp. 4044
Author(s):  
Marko Stokic ◽  
Davor Vujanovic ◽  
Dragan Sekulic

The efficient vehicle procurement is an important business segment of different companies with their own vehicle fleet. It has a significant influence on reducing transport and maintenance costs and on increasing the fleet’s energy efficiency. It is indispensable that managers consider various criteria from several aspects when procuring a vehicle. In that sense, we defined 13 relevant criteria and divided them into four multidisciplinary aspects: Construction-technical, financial, operational, and environmental. Decision-Making Trial and Evaluation Laboratory-Based Analytic Network Process (DANP) method was applied to evaluate the significance of defined criteria and aspects and their interdependency. It is established that the three most important criteria for vehicle procurement are vehicle price, vehicle maintenance, and vehicle selling price. The most important aspect is construction technical aspect, while the aspect of the environment is the least important. The Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method was used to rank eight different vehicles, which were considered by vehicle fleet manager at the observed company. This model assists fleet managers in the selection of the most suitable vehicle for procurement, while significantly reducing decision-making time and simultaneously observing all necessary criteria and their weights. Moreover, we have considered 10 different scenarios to establish whether and how the rank of the observed alternatives would change.


2019 ◽  
Vol 18 (06) ◽  
pp. 1875-1908
Author(s):  
Akshay Hinduja ◽  
Manju Pandey

ERP system is a software package that integrates and manages all the facets of the business and deeply influences the success of a business endeavor. The increasing competition in the market, rapidly changing demands, and increasing intricacy of business procedures induce enterprises to adopt ERP solutions. Adopting an ERP solution increases synchronization between business activities and reinforces managerial decision-making. However, it also involves a large investment, a significant amount of human resources and time, and risk of failure. Therefore, the selection of an ERP solution is a crucial decision for enterprises. To address this decision-making problem, we propose a four-stage multi-criteria decision-making approach in this paper. Three prevalent MCDM techniques, DEMATEL, IF-ANP, and IF-AHP, are used in different stages of the methodology to achieve better outcomes. The methodology incorporates the intuitionistic fuzzy sets to capture uncertainty and hesitancy involved in decision makers’ judgments. In addition, we develop a novel priority method to derive weights from the intuitionistic fuzzy preference relations. To validate the feasibility of the proposed approach, a case study is carried out on the selection of cloud-based ERP system for SMEs in the Chhattisgarh state of India, which indicates that the proposed four-stage approach effectively handles the ERP selection problem.


2020 ◽  
Vol 2020 ◽  
pp. 1-13
Author(s):  
Jinyu Li ◽  
Asif Ullah ◽  
Jun Li ◽  
Shah Nazir ◽  
Habib Ullah Khan ◽  
...  

Requirement engineering is the first phase of software engineering. In requirement engineering, the first phase is requirement elicitation (RE), which is the most critical and error-prone activity. In this phase, the requirements are extracted from various sources; after extraction, they are analyzed and documented for a specific purpose of software development. In RE, process requirements from stakeholders are gathered, upon which the entire software product failure and success are dependent. In order to accomplish the goal of requirement elicitation, various techniques are used. However, the selection of these techniques is a very challenging task, as one technique may suit a situation but may not be suited for other situations. Besides this, project attributes such as documentation culture of organization, degree of relationship among stakeholders, and familiarity to domain also have a great impact on the process of technique selection. The reason is that there is no empirical value of the techniques that provide help in techniques selection to analyze the basis software project attributes. This study proposed the analytic network process, which is one of the multicriteria decision making processes for the elicitation technique selection process with respect to criterion attributes of project. The motivation toward the use of the ANP approach for the selection of requirement selection technique is that there are dependencies existing among attributes of the project elements. So, the ANP approach is capable of dealing with such situations where dependencies and complexity occur. Results of the proposed study demonstrate that the technique helps in complex situations where decision making is difficult based on the alternatives.


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