scholarly journals The application of outsourcing decision-making methods in a logistics context in South Africa

Author(s):  
Naomi Bloem ◽  
Wilna L. Bean

Background: Companies have often relinquished the control of important business functions to outside suppliers for the sake of short-term savings and because of the lack of use of proper decision-making methods within the business.Objectives: This article identified three methods of decision-making and applied it to a logistics outsourcing problem. The logistics outsourcing problem consisted of a make-or-buy decision as well as a supplier selection process. The purpose of the study was to determine the most suitable method in the case of logistics outsourcing.Method: The decision-making methods were applied to a South African case study within the fast moving consumer goods (FMCG) industry. The logistics functions considered in the case study included secondary distribution and warehousing of finished goods. Each method considered the same evaluation criteria and the results were analysed and compared.Results: Each method produced different results to the logistics outsourcing problem. The method developed by Platts, Probert and Canez (2000) suggested that the logistics functions be insourced. The decision tree method suggested outsourcing both functions, with a unit rate cost model. The results from the linear programming (LP) method indicated that the secondary distribution function should be insourced and the warehousing function outsourced, with a fixed and variable cost model pending further analysis of the demand trends.Conclusion: The study provides empirical evidence that proven outsourcing decision-making methods, such as the method developed by Platts et al. (2000), the LP method and the decision tree method traditionally applied to a manufacturing outsourcing decision problem, can be adapted and applied to a logistics outsourcing decision problem of a South African FMCG company.

2019 ◽  
Vol 11 (1) ◽  
pp. 1025-1034 ◽  
Author(s):  
Gyula Nagy ◽  
György Vida ◽  
Lajos Boros ◽  
Danijela Ćirić

Abstract Environmental justice is a normative framework for the analysis of environmental impacts on the wellbeing of individuals and social groups. According to the framework, the deprived social groups and ethnic minorities are often more exposed to environmental risks and hazards due to their disadvantaged situation, and due to the lack of representation and political power. To manage the impacts of injustices and to include the citizen in the decision-making processes, proper information is needed on local attitudes and decision-making processes. Therefore, this study sought to (i) identify the main factors shaping the attitudes towards environmental injustices and (ii) to analyse the attitudes and perception of the various social groups and (iii) to identify the main factors which are shaping the attitudes and actions of those who were affected by the floods of 2001 and 2010 through the use of decision tree method. The data for the predictive model was acquired from a questionnaire survey conducted in two disadvantaged and flood-hit Hungarian regions. Based on the survey data, a principal component analysis (PCA) was conducted, which resulted in three principal components; fear, social change, and change in the built environment. The study focused only on the elements of the “fear principal component”, due to the decision tree tool homogenous groups identified in relation to this component. Our analysis showed that ethnicity has a determinative role in the emergence and the level of fear from floods; the Roma respondents expressed a significantly higher level of fear than others.


2011 ◽  
Vol 90-93 ◽  
pp. 1706-1710
Author(s):  
Qian Qian Wang ◽  
Yun Feng Hu ◽  
Wen Long Song ◽  
Feng Wang

Soil salinization is a most important factor to influence agriculture in arid area. There is a dire need to monitoring the soil salinization information based on Chinese own satellite data. In the study, a remote sensing classification method of soil salinization land based on knowledge discovery and decision-making process that is benefit to arise classification precision through a decision tree method has been constructed. The result shows that near 80% area of the entire county has suffered soil salinization with different grade. The percent of heavy, middle and light grades soil salinization area are 11.29, 20.53 and 49.01 respectively.


Facilities ◽  
2015 ◽  
Vol 33 (3/4) ◽  
pp. 229-244 ◽  
Author(s):  
Mohammad A. Hassanain ◽  
Sadi Assaf ◽  
Abdul-Mohsen Al-Hammad ◽  
Ahmed Al-Nehmi

Purpose – The purpose of this paper is to present the development of a multi-criteria decision-making model for use by maintenance managers to consider before making a decision on outsourcing. Design/methodology/approach – Thirty-eight factors were identified for outsourcing maintenance services. These factors were grouped under six categories, namely: “strategic”, “management”, “technological”, “quality”, “economic” and “function characteristics”. The Analytic Hierarchy Process, as a multi-criteria decision-making model, was introduced and applied as an approach for maintenance managers in Saudi Arabian universities to consider before making a decision on outsourcing. A case study on the outsourcing decision of maintenance services of air-conditioning systems was carried out to apply the developed model. Findings – Data analysis indicated that all outsourcing decision groups of factors have almost equal weight, with the “quality” group of factors having the highest weight and the “technological” group of factors having the least weight. Further, the analysis indicated, in general, that the recommended decision for the maintenance managers is to outsource. However, an application of the developed model through a case study on the outsourcing of maintenance services of air-conditioning systems showed that the recommended action is not to outsource. Originality/value – The presented approach in this paper could be of practical benefit to maintenance managers in their decision making of whether or not to outsource maintenance services. The factors in the model were identified through a literature survey of research carried out in different countries. Therefore, the model could be applied in different settings, depending on the relative weight of the factors by the users.


Author(s):  
Mary Anne Atkinson ◽  
Ozden Bayazit ◽  
Birsen Karpak

Decisions related to managing IT resources - which resources to keep in-house and which resources to outsource - are critical to business success. The goal of this paper is to show the usefulness of the Analytic Hierarchy Process (AHP) as a decision-making tool for IT sourcing decisions, based on an analysis of factors that recent literature found to be associated with IT sourcing risk. Although the AHP previously has been suggested for IT outsourcing decision making, this study is the first to consider evaluating the risks of offshore outsourcing, rural outsourcing, and in-sourcing IT processes by using the AHP. From the perspective of the expert decision maker, three IT sourcing strategies were evaluated with respect to 58 criteria. The case study example presented in this paper shows the effectiveness of the AHP to support management for this business decision. The authors' results show that a systematic approach to analyzing outsourcing can reduce the uncertainty and risk that is common in such decisions.


2018 ◽  
Vol 10 (3) ◽  
pp. 106
Author(s):  
Mirza Suljic ◽  
Edin Osmanbegovic ◽  
Željko Dobrović

The subject of this paper is metamodeling and its application in the field of scientific research. The main goal is to explore the possibilities of integration of two methods: questionnaires and decision trees. The questionnaire method was established as one of the methods for data collecting, while the decision tree method represents an alternative way of presenting and analyzing decision making situations. These two methods are not completely independent, but on the contrary, there is a strong natural bond between them. Therefore, the result reveals a common meta-model that over common concepts and with the use of metamodeling connects the methods: questionnaires and decision trees. The obtained results can be used to create a CASE tool or create repository that can be suitable for exchange between different systems. The proposed meta-model is not necessarily the final product. It could be further developed by adding more entities that will keep some other data.


2014 ◽  
Vol 31 (5) ◽  
pp. 319-345 ◽  
Author(s):  
Ramachandran N. ◽  
Sivaprakasam P. ◽  
Thangamani G. ◽  
Anand G.

Purpose – Cloud Computing (CC) technology is getting implemented rapidly in the educational sector to improve learning, research and other administrative process. As evident from the literature review, most of these implementations are happening in the western countries such as USA, UK, while the level of implementation of CC in developing countries such as India is rare. Moreover, implementing CC technology in the educational sector require various decisions to be made by the managers of the Information Technology (IT) department such as selecting suitable deployment model, vendor providing cloud service, etc. in their respective university or institute. The purpose of this paper is to attempt to address one such decision. Since, different types of CC deployment are available; selecting a suitable one plays a key role, as it might have an impact on the requirements of various stakeholders such as students, teachers, administrative staff (especially the staff members in the IT department), etc. apart from affecting the overall performance of the facilities such as a laboratory. Naturally, a proper decision by analysing multiple perspectives has to be made while carrying out such strategic initiatives by any educational institute. Design/methodology/approach – A case study methodology has been chosen as the research methodology to discuss and demonstrate the above decision problem that was faced in real time by one of the educational institutes in India, offering high-quality management education. The IT managers of this institute were planning to switch over to CC technology for the computer laboratory and they have to make a decision of choosing suitable alternative CC deployment models such as private cloud (PRC), public cloud (PUC), community cloud (COC), hybrid cloud (HYC), etc. by analysing and comparing them based on various factors and perspectives such as elasticity, availability, scalability, etc. Since, multiple factors are involved in making such a strategic decision, the most commonly used Multi-Criteria Decision Making (MCDM) model – namely, the Analytic Hierarchy Process (AHP) is used as a decision support during the decision making process. Findings – The team of decision makers, who were planning to implement CC in the case institute, found that PRC is best as they believed that it would provide adequate cost savings, apart from providing necessary security to maintain confidential information such as student's detail, grades, etc. Research limitations/implications – The results obtained are based on a single case study. Hence, they cannot be generalized for institutions across educational sector. However, the decision making situation and understanding its impact on the stakeholders of the educational institute can be common across various educational institute. Practical implications – Using a real-life case study of an educational institute, this paper presented a strategic decision making situation, which needs to be considered by the IT managers of the educational institutes when they decide to switch over to CC technology. Various criteria to be considered during the decision making process was identified from the literature review were identified and enumerated. These factors would useful for the IT managers of the different educational institute and they can suitably add or delete these decision criteria as per their requirements and situation at hand. Moreover, the algorithm of AHP, which was used as a decision support, was presented in a step-by-step manner, which should be beneficial for the practitioners to apply the same for similar decision making situations. Originality/value – It is believed that this paper would be the first to report on a strategic decision of choosing the deployment model for CC technology especially in the educational sector. Similarly, this paper would also contribute to the field of CC, as it lists out the decision criteria that are to be considered for making the above decision, which has not got adequate importance. Lastly, this paper is also unique in the realm of AHP because application for a decision problem in the field of CC especially in the educational sector is least reported.


Author(s):  
Yi-Fang Lan ◽  
Che-Jen Su

In decisions about transportation for family vacations, the distribution of the decision-making role between fathers and other family members is subject to characteristics of the society, the travel and the household. Therefore, the purpose of this study is to present a data-mining model that identifies the relative importance of those determining characteristics in predicting the probability of the father’s predominance in transportation decisions for family vacations. By investigating cases across four East Asian societies and using exhaustive chi-square automatic identification detector analysis, it was found that the primary source of the family’s income was the strongest predictor of the father-determined likelihood of decisions about vacation transportation. The results also suggested that the decision tree method is appropriate for targeting the father-predominant market of transportation in cross-societal contexts.


Sign in / Sign up

Export Citation Format

Share Document