• Title/Summary/Keyword: Decision-making Hierarchy

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Supplier Selection using DEA-AHP Method in Steel Distribution Industry (DEA AHP 모형을 통한 철강유통산업에서의 공급업체 선정)

  • Park, Jinkyu;Kim, Pansoo
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.40 no.2
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    • pp.51-59
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    • 2017
  • Due to the rapid change of global business environment, the growth of China's steel industry and the inflow of cheap products, domestic steel industry is faced on downward trend. The change of business paradigms from a quantitative growth to a qualitative product is needed in this steel industry. In this environment, it is very important for domestic steel distribution companies to secure their competitiveness by selecting good supply companies through a efficient procurement strategy and effective method. This study tried to find out the success factors of steel distribution industry based on survey research from experts. Weighted values of each factors were found by using AHP (analytic hierarchy process) analysis. The weighted values were applied to DEA(data envelopment analysis) model and eventually the best steel supply company were selected. This paper used 29 domestic steel distribution firms for case example and 5 steps of decision process to select good vendors were suggested. This study used quality, price, delivery and finance as a selection criteria. Using this four criterions, nine variable were suggested. Which were product diversity, base price, discount, payment position, average delivery date, urgency order responsibility and financial condition. These variables were used as a output variable of DEA. Sales and facilities were used as an input variable. Pairwise comparison was conducted using these variables. The weighted value calculated by AHP pairwise comparison were used for DEA analysis. Through the analysis of DEA efficiency process, good DMU (decision making unit) were recommended as a steel supply company. The domestic case example was used to show the effectiveness of this study.

Method for Selecting a Three Dimensional Television (3차원 텔레비전의 제품선정 방법)

  • Byun, Dae-Ho
    • Journal of Digital Convergence
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    • v.11 no.3
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    • pp.41-48
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    • 2013
  • Emerging three-dimensional television (3DTV) as a new IT product shows a possibility that television is not for just watching broadcasting, but an attractive tool for applying it to our real life. Three dimensional television is generally more effective and attractive than two-dimensional television (2DTV). But it still needs continuous technological improvement to solve its inherent limitations until many customers decide to purchase 3DTVs without hesitation. Innovative products like 3DTV encounter a quality problem leading purchase decision by customers. Quality is regarded as one of the most important factors affecting customers to adopt and use the product. Furthermore, measuring quality effectively is considerable for the 3DTV research. In this paper, we suggest the Analytic Hierarchy Process(AHP) method for evaluating 3DTVs in a view of quality. We describe quality criteria affecting the 3DTV selection through a literature survey and develope an analytical method for measuring quality. We classify the quality of 3DTV into four types and suggest a concept of the quality ratio as a measurement criteria instead of the quality gap. Though a numerical example, we show how priorities of 3DTV with versatile manufacturers is computed.

A Evaluation Model of AHP Results Using Monte Carlo Simulation (Depending on the Case Studies of Road and Rail) (몬테카를로 시뮬레이션을 통한 AHP결과 해석모형개발 (도로 및 철도부문 사례를 중심으로))

  • Sul, You-Jin;Chung, Sung-Bong;Song, Ki-Han;Chon, Kyung-Soo;Rhee, Sung-Mo
    • Journal of Korean Society of Transportation
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    • v.26 no.4
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    • pp.195-204
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    • 2008
  • Multi-Criteria Analysis is one method for optimizing decisions that include numerous characteristics and objective functions. The Analytic Hierarchy Process (AHP) is used as a general Multi-Criteria Analysis considering many critical issues. However, since validation procedures for the decision reliability of AHP valuers had been left off existing methodologies, a new methodology including such validation procedures is required to make more reliable decisions. In this research, idea decision results are derived using Monte Carlo Simulation in cases where AHP valuers do not have expertise in the specific project, and these results are compared with the results derived from experts to develop a new analysis model to make more reliable decisions. Finally, this new analysis is applied to various field case studies of road and rail carried out by the Korea Development Institute (KDI) between 2003 and 2006 to validate the new analysis model. The study found that approximately 20% of decisions resulting from the existing methodology are considered prudent. In future studies, the authors suggest analyzing the correlation between initial weights and final results since final results are enormously influenced by the initial weight.

정보통신표준화 전략계획수립을 위한 방법론연구-표준화대상의 우선순위 결정을 중심으로-

  • 구경철;박기식;송기평;임채연
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 1995.04a
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    • pp.847-864
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    • 1995
  • In this paper we present an integrated methodology for strategic planning in telecommunications standardization. Especially this paper focuses on the method of setting priorities for telecommunications SWAs(Standardization Work Areas) and related SWls(Standardization Work Items). To make a strategic plan for telecommunications standardization in which usually includes prioritization, resource allocation, standardization schedule for each SWA is based on prioritization of SWAs. Our methodology integrated various existing methods including the Analytic Hierarchy Process(AHP) and a modified Delphi technique. Recently, rapid technology evolution in telecommunications fields increases the necessity of developing more and more new standards. Also increased complexity of those technologies makes standards more complicated, more specified and more thick than the past ones. As a result, the number of SWAs and SWIs are being increased constantly. Furthermore, rapid telecommunication environment changes such as deregulation, liberalization, privatization, regionalization, and globalization surrounding standardization bring about new challenges and opportunities. Due to all these trends, strategic planning for telecommunications standardization grows more and more important. To cope with these challenges and also to make the more efficient use of the limited standardization resources including time, financial, human resources, we suggest more logical and rational approach that will be a backbone of strategic plan for telecommunications standardization. The telecommunications standardization planning process involves a MCDM(Multi-Criteria Decision Making) process. The Analytic Hierarchy Process(AHP) is a kind of MCDM approaches. Our method is based on a combination of a modified Delphi technique and an application of AHP(Liberator's spreadsheet model). Analyzed data from Delphi technique is used as inputs to ABP. In addition, we also focus on the technique how to combine group judgments and to handle a large number of comparisons. We present analyzed results including Pilot and Full Scale Survey according to the proposed process. The result of this study will be useful input for telecommunications standardization policy making and practical implementation.

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A Study on the Location Factors of Foreign Direct Investment Firms in Korea (국내 외국인직접투자기업의 입지결정요인에 관한 연구)

  • Lee, Ho-Yeong;Park, Won-Seok
    • Journal of the Korean association of regional geographers
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    • v.17 no.1
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    • pp.58-74
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    • 2011
  • This study analyzed and compared the importance and priority of location decision factors in Foreign Direct Investment Firms managing the manufacturing business in the nation's southeastern economic zone, and in expert group by using AHP analytical technique based on examining the location theory and the prior research of real estate for industry. Also, it analyzed difference in importance and priority for location factors by corporate scale, by business category, and by location type targeting only foreign direct investment firms, and offered references necessary for location decision-making. In addition, to elicit useful information for policy related to location decision factors for foreign direct investment firms, the implications were elicited by analyzing the results recognized between foreign direct investment firms and expert group on information elements regarding investment satisfaction, business bottlenecks, and location decision process. The considerable gap was indicated in importance and priority of location decision factors considered between the nation's foreign direct investment firms and real-estate expert group for industry. As a result of analyzing by reflecting the corporate characteristic variable in location assessment model unlike before, the importance of the competitive advantage factor and the business strategic factor was indicated to be very high.

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An EFASIT model considering the emotion criteria in Knowledge Monitoring System (지식모니터링시스템에서 감성기준을 고려한 EFASIT 모델)

  • Ryu, Kyung-Hyun;Pi, Su-Young
    • Journal of Internet Computing and Services
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    • v.12 no.4
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    • pp.107-117
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    • 2011
  • The appearance of Web has brought an substantial revolution to all fields of society such knowledge management and business transaction as well as traditional information retrieval. In this paper, we propose an EFASIT(Extended Fuzzy AHP and SImilarity Technology) model considering the emotion analysis. And we combine the Extended Fuzzy AHP Method(EFAM) with SImilarity Technology(SIT) based on the domain corpus information in order to efficiently retrieve the document on the Web. The proposed the EFASIT model can generate the more definite rule according to integration of fuzzy knowledge of various decision-maker, and can give a help to decision-making, and confirms through the experiment.

Locational Preference of Last Mile Delivery Centres: A Case Study of Thailand Parcel Delivery Industry

  • Amchang, Chompoonut;Song, Sang-Hwa
    • The Journal of Industrial Distribution & Business
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    • v.9 no.3
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    • pp.7-17
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    • 2018
  • Purpose - The purpose of this paper is to improve last mile delivery capability and ensure customers' satisfaction by approaching an analytic hierarchy process(AHP) and identifying criteria framework to determine locations of last mile delivery centre(LMDC). Research design, data, and methodology - Traffic congestion and emission policy in cities are barriers of last mile delivery in dense areas. The urban consolidation centre(UCC) cannot increase last mile delivery efficiency in dense cities because of their space and traffic limitation. In this paper, we develop a case to improve last mile delivery efficiency and to ensure customers' satisfaction by concentrating on LMDC. In addition, AHP has been applied to identify criteria framework and determine LMDC locations. The weighted priorities are derived from parcel delivery industry experts and have been calculated using Expert Choice software. Results - The framework criteria have assisted decision makers to place LMDC in a dense area to enhance customer's satisfaction with last mile delivery service. Conclusions - AHP has provided ranking framework criteria of LMDC potential for parcel delivery industry. The LMDC helps by improving last mile delivery efficiency to final destination amids conditions of CO2 emissions, traffic congestion, and pollution problems. It especially concerns delivery service activities when delivering parcels to customers rather than UCC.

Assessment of ASP for the Construction Industry (건설 산업 ASP 평가 및 우선 적용 건설업무기능의 도출)

  • Kang, Seung-Hee;Lee, Sang-Hyung;Jung, Young-Soo
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2006.11a
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    • pp.579-583
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    • 2006
  • Adopting ASP applications in the construction industry can minimize the resource and cost of an enterprise. And it also can overcome defective management ability and poor management environment. Thus, This paper develops and evaluates a model of business functions and factors which have influence on the assessment of ASP for the construction industry. The findings of this study can provide the basis of ASP research in the construction industry, and help the construction firms to make decision for adopting ASP

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Multiobjective R&D Investment Planning under Uncertainty (불확실한 상황하에서의 다복적 R & D 투자계획수립에 관한 연구-최적화 기법과 계층화 분석과정의 통합접 접근방안을 중심으로-)

  • 이영찬;민재형
    • Journal of the Korean Operations Research and Management Science Society
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    • v.20 no.2
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    • pp.39-60
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    • 1995
  • In this paper, an integration of stochastic dynamic programming (SDP), integer goal programming (IGP) and analytic hierarchy process (AHP) is proposed to handle multiobjective-multicriteria sequential decision making problems under uncertainty inherent in R & D investment planning. SDP has its capability to handle problems which are sequential and stochastic. In the SDP model, the probabilities of the funding levels in any time period are generated using a subjective model which employs functional relationships among interrelated parameters, scenarios of future budget availability and subjective inputs elicited from a group of decision makers. The SDP model primarily yields an optimal investment planning policy considering the possibility that actual funding received may be less than anticipated one and thus the projects being selected under the anticipated budget would be interrupted. IGP is used to handle the multiobjective issues such as tradoff between economic benefit and technology accumulation level. Other managerial concerns related to the determination of the optimal project portifolio within each stage of the SDP model. including project selection, project scheduling and annual budget allocation are also determined by the IGP. AHP is proposed for generating scenario-based transformation probabilities under budgetary uncertainty and for quantifying the environmental risk to be considered.

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A multi-attribute index for evaluating of national nuclear R&D prniects in Korea: multi-attribute utility analysis (다속성 효용분석을 이용한 원자력연구개발과제 사후평가지표 개발)

  • 곽승준;유승훈;김찬준
    • Journal of Korea Technology Innovation Society
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    • v.5 no.1
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    • pp.90-109
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    • 2002
  • The national nuclear R&D projects have been implemented for the purpose of supply of nuclear power which was proved to be safety and stability. Evaluating the national nuclear R&D projects has critical importance in nu-clear energy management aspect. This paper employs multi-attribute utility analysis as a basis for obtaining an evaluation index to assess the national nuclear R&D projects using a specific case study of Korea. To structure and quantify basic values for the evaluation, we elicited important attributes, then refined and structured them into a hierarchy. A multi-attribute index is constructed as a multi-attribute utility function, based on value judgments provided by a group of technical experts, policy makers, and faculties. As a result, the objective of attainment of a proposed object is given the highest priority, followed by appropriateness of project and research strategy, utilization of research output, within attribute ranges defined for the attributes. We found that the work and results of this study can provide valuable insights and decision opportunities for virtually all major decision making in evaluation of the national nuclear R&D projects in Korea.

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