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An Application of Multi-Criteria Decision-Making Model to Strategic Outsourcing for Effective Supply-Chain Linkages

Copyright © 2009. 14 pages.
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DOI: 10.4018/978-1-60566-090-5.ch015
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Kwak, N. K. and Chang Won Lee. "An Application of Multi-Criteria Decision-Making Model to Strategic Outsourcing for Effective Supply-Chain Linkages." Selected Readings on Strategic Information Systems. IGI Global, 2009. 223-236. Web. 21 Oct. 2014. doi:10.4018/978-1-60566-090-5.ch015


Kwak, N. K., & Won Lee, C. (2009). An Application of Multi-Criteria Decision-Making Model to Strategic Outsourcing for Effective Supply-Chain Linkages. In M. Hunter (Ed.), Selected Readings on Strategic Information Systems (pp. 223-236). Hershey, PA: Information Science Reference. doi:10.4018/978-1-60566-090-5.ch015


Kwak, N. K. and Chang Won Lee. "An Application of Multi-Criteria Decision-Making Model to Strategic Outsourcing for Effective Supply-Chain Linkages." In Selected Readings on Strategic Information Systems, ed. M. Gordon Hunter, 223-236 (2009), accessed October 21, 2014. doi:10.4018/978-1-60566-090-5.ch015

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An Application of Multi-Criteria Decision-Making Model to Strategic Outsourcing for Effective Supply-Chain Linkages
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An appropriate outsourcing and supply-chain planning strategy needs to be based on compromise and more objective decision-making procedures. Although factors affecting business performance in manufacturing firms have been explored in the past, focuses are on financial performance and measurement, neglecting intangible and nonfinancial factors in the decision-making planning process. This study presents development of an integrated multi-criteria decision-making (MCDM) model. This model aids in allocating outsourcing and supply-chain resources pertinent to strategic planning by providing a satisfying solution. The model was developed based on the data obtained from a business firm producing intelligent home system devices. This developed model will reinforce a firm’s ongoing outsourcing strategies to meet defined requirements while positioning the supply-chain system to respond to a new growth and innovation.
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Multi-Criteria Decision Making

Multi-criteria decision making (especially integrated MCDM) is defined as an applied linear programming model for a decision process that allows the decision-maker to evaluate various competing alternatives to achieve certain goals. Relative importance is assigned to the goal with respect to a set of chosen criteria. MCDM is appropriate for situations in which the decision-maker needs to consider multiple criteria in arriving at the best overall decisions. In MCDM, a decision-makers select the best strategy among a number of alternatives that they evaluate on the basis of two or more criteria. The alternatives can involve risks and uncertainties; they may require sequential actions at different times; and a set of alternatives might be either finite or infinite. A decision-maker acts to maximize a value or utility function that depends on the chosen criteria. Since MCDM assumes that a decision-maker is to select among a set of alternatives, its objective function values are known with certainty. Many MCDM problems are formulated as multiple objective linear, integer, nonlinear, and/or interactive mathematical programming problems.


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Table of Contents
Chapter 1
Mark Xu, Roland Kaye
This chapter discusses the nature of strategic intelligence and the challenges of systematically scanning and processing strategic information. It... Sample PDF
The Nature of Strategic Intelligence: Current Practice and Solutions
Chapter 2
Keith Sawyer, John Gammack
Although it is widely accepted that alignment of knowledge with corporate strategy is necessary, to date there have been few clear statements on... Sample PDF
Developing and Analysing Core Compentencies for Alignment with Strategy
Chapter 3
William Y.C. Wang, Michael S.H. Heng, Patrick Y.K. Chau
Combining with the collaborations between business customers and suppliers, traditional purchasing and logistics functions have evolved into a... Sample PDF
Implementing Supply Chain Management in the New Era: A Replenishment Framework for the Supply Chain Operations Reference Model
Chapter 4
Purnendu Mandal
Since behavioral and cultural factors play a major role in strategic alliances between partners, IT managers must understand the intricacies... Sample PDF
Behavioral Factors and Information Technology Infrastructure Considerations in Strategic Alliance Development
Chapter 5
Yi-chen Lan, Bhuvan Unhelkar
Integrated Supply Chain Management (ISCM) involves the linking of suppliers and customers with the internal business processes of an organization.... Sample PDF
A Methodology for Developing an Integrated Supply Chain Management System
Chapter 6
Summer E. Bartczak, Jason M. Turner, Ellen C. England
It is widely acknowledged that knowledge management (KM) strategy is a desired precursor to developing specific KM initiatives. Strategy development... Sample PDF
Challenges in Developing a Knowledge Management Strategy: A Case Study of the Air Force Materiel Command
Chapter 7
Michael Shumanov, Michael Ewing
While the managerial rationale for adopting customer relationship management (CRM) has been fairly well articulated in the literature, research on... Sample PDF
Developing a Global CRM Strategy
Chapter 8
Richard Welke, Gabriel Cavalheiro, Ajantha Dahanayake
Commercial airlines face an extremely challenging operating and competitive environment. To remain in business they must comply with everchanging... Sample PDF
Improving IT-Enabled Sense and Respond Capabilities: An Application of Business Activity Monitoring at Southern International Airlines
Chapter 9
Quangang Yang, Carl Reidsema
The rapid development of computing technology has facilitated its use in engineering design and manufacturing at an increasing rate. To deliver high... Sample PDF
Intelligent Design Advisor: A Knowledge-Based Information System Approach for Product Development and Design
Chapter 10
Alejandro Vaisman
Today, information and timely decisions are crucial for an organization’s success. A decision support system (DSS) is a software tool that provides... Sample PDF
Data Quality-Based Requirements Elicitation for Decision Support Systems
Chapter 11
Kee-Young Kwahk, Hee-Woong Kim, Hock Chuan Chan
This study proposes a new methodology that facilitates organizational decision support through knowledge integration across organizational units.... Sample PDF
A Knowledge Integration Approach for Organizational Decision Support
Chapter 12
Walter Rodriguez, Janusz Zalewski, Elias Kirche
This article presents a new concept for supporting electronic collaboration, operations, and relationships among trading partners in the value chain... Sample PDF
Beyond Intelligent Agents: E-Sensors for Supporting Supply Chain Collaboration and Preventing the Bullwhip Effect
Chapter 13
Kevin Swingler, David Cairns
This chapter identifies important barriers to the successful application of Computational Intelligence (CI) techniques in a commercial environment... Sample PDF
Making Decisions with Data: Using Computational Intelligence within a Business Environment
Chapter 14
Fen Wang, Guisseppi Forgionne
E-business is far more about strategy than technology, and the strategy of e-business is very important in today’s dynamic and competitive... Sample PDF
EBBSC: A Balanced Scorecard-Based Framework for Strategic E-Business Management
Chapter 15
N. K. Kwak, Chang Won Lee
An appropriate outsourcing and supply-chain planning strategy needs to be based on compromise and more objective decision-making procedures.... Sample PDF
An Application of Multi-Criteria Decision-Making Model to Strategic Outsourcing for Effective Supply-Chain Linkages
Chapter 16
Yingxu Wang, Guenther Ruhe
Decision making is one of the basic cognitive processes of human behaviors by which a preferred option or a course of actions is chosen from among a... Sample PDF
The Cognitive Process of Decision Making
Chapter 17
Abou Bakar Nauman, Romana Aziz, A.F.M. Ishaq
This chapter examines the causes of failure in a Web-based information system development project and finds out how complexity can lead a project... Sample PDF
Information System Development Failure and Complexity: A Case Study
Chapter 18
Fiona Fui-Hoon Nah, Zahidul Islam, Mathew Tan
Enterprise resource planning (ERP) implementations in multinational manufacturing companies have experienced various degrees of success. This... Sample PDF
Empirical Assessment of Factors Influencing Success of Enterprise Resource Planning Implementations
Chapter 19
Shirish C. Srivastava, Thompson S.H. Teo
Most existing studies on technology training address the operational issues of training process (e.g., training needs assessment, learning, delivery... Sample PDF
IT Training as a Strategy for Business Productivity in Developing Countries
Chapter 20
Timothy Shea, Ahern Brown, D. Steven White, Catharine Curran-Kelly, Michael Griffin
Adopting a focus on CRM has been an industry standard for nearly two decades. While evidence suggests that a majority of the attempts to implement... Sample PDF
Customer Relationship Management (CRM) Metrics: What's the Holdup?
Chapter 21
Thorsten Blecker, Wolfgang Kersten, Hagen Späth, Birgit Koeppen
This chapter introduces a game-theoretic approach to supply chain risk management. The focus of this study lies on the risk of a single supply chain... Sample PDF
Supply Chain Risk Management: A Game Theoretic Analysis
Chapter 22
Ketan Vanjara
This chapter initiates the concept of a customercentric model in supply chain systems. It discusses various constraints of present-day supply chain... Sample PDF
The Future of Supply Chain Management: Shifting from Logistics Driven to a Customer Driven Model
Chapter 23
Ronald E. McGaughey, Angappa Gunasekaran
Business needs have driven the design, development, and use of Enterprise Resource Planning (ERP) systems. Intra-enterprise integration was a... Sample PDF
Enterprise Resource Planning (ERP): Past, Present and Future
Chapter 24
Rahul Singh
Organizations rely on knowledge-driven systems for delivering problem-specific knowledge over Internet-based distributed platforms to... Sample PDF
A Multi-Agent Decision Support Architecture for Knowledge Representation and Exchange
Chapter 25
Huizhang Shen, Jidi Zhao, Wayne W. Huang
Review on group decision support systems (GDSS) indicates that traditional GDSS are not specifically designed to support mission-critical group... Sample PDF
Mission-Critical Group Decision-Making: Solving the Problem of Decision Preference Change in Group Decision- Making Using Markov Chain Model1