• Title/Summary/Keyword: Decision-making Hierarchy

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A Comparison Study on Supplier and Green Supplier Selection Problems using Fuzzy AHP and BSC (Fuzzy AHP와 BSC를 이용한 공급자와 그린 공급자 선정 문제의 비교 연구)

  • Seo, Kwang-Kyu
    • Journal of the Korea Safety Management & Science
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    • v.13 no.4
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    • pp.117-124
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    • 2011
  • Supplier selection is one of the most important activities of a company. This importance is increased even more by new strategies in a supply chain, because of the key role suppliers perform in terms of quality, costs and services which affect the outcome in the buyer's company. In addition, green production has become an important issue for almost every manufacturer and will determine the sustainability of a manufacturer. Therefore a performance evaluation system for supplier and green suppliers is necessary to determine the suitability of suppliers to cooperate with the company. Supplier and green supplier selection is a multiple criteria decision making problem in which the objectives are not equally important. In practice, vagueness and imprecision of the goals, constraints and parameters in these problems make the decision making complicated. The objective of this study is to construct a decision-making process using fuzzy analytic hierarchy process (FAHP) and balanced scorecard (BSC) for evaluating supplier and green suppliers in the manufacturing industry. The BSC concept is applied to define the hierarchy with four major perspectives and performance indicators are selected for each perspective. FAHP is then proposed in order to tolerate vagueness and ambiguity of information. Finally, FAHP is applied to facilitate the solving process. With the proposed approach, manufacturers can have a better understanding of the capabilities that supplier and green supplier must possess and can evaluate and select the most suitable supplier for cooperation.

A Multiple Criteria Decision-making Model to Select an Optimal Tomato Export Farm (최적의 토마토 수출 생산자 선정을 위한 다기준 의사결정 모델)

  • Seo, Kwang-Kyu;Kim, Young Shik
    • Journal of Digital Convergence
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    • v.11 no.1
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    • pp.121-127
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    • 2013
  • As the worldwide trade of agricultural products became liberalized with the establishment of WTO and FTA, relatively cheaper agricultural products have influenced the Korean domestic market substantially. Fortunately, foreign countries have soften their restrictions on Korean agricultural exports, providing Korean farmers with more opportunities to advance into the world market. This study aims to propose a multiple-criteria decision-making model for selecting an optimal tomato export farm, as the part of an effort to vitalize exports of domestic agricultural products amid the competitive agricultural market worldwide. For this purpose, we are suggesting a 2-step decision-making model which consists of a simple hierarchy decision model that preliminary selects tomato export farms and a detailed hierarchy decision model that chooses the final and optimal tomato export farm. We applied the analytic hierarchy process (AHP) to determine the relative importance of the used evaluation factors and to choose the tomato export farms with most potential. Eventually, the systematic and efficient decision-making model proposed in this paper can be applied to determine the optimal export farms for crops other than tomato, and thus it can encourage the competitiveness of Korean agricultural exports.

Group Decision Support with Analytic Hierarchy Process (계층적 분석기법을 활용한 그룹의사결정 지원)

  • An, Byung-Suk
    • Journal of the military operations research society of Korea
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    • v.28 no.1
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    • pp.83-96
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    • 2002
  • The Analytic Hierarchy Process (AHP) is well suited to group decision making and offers numerous benefits as a synthesizing mechanism in group decisions. To date, the majority of AHP applications have been in group settings. One reason for this may be that groups often have an advantage over individual when there exists a significant difference between the importance of quality in the decision and the importance of time in which to obtain the decision. Another reason may be the best alternative is selected by comparing alternative solutions, testing against selected criteria, a task ideally suited for AHP. In general, aggregation methods employed in group AHP can be largely classified into two methods: geometric mean method and (weighted) arithmetic mean method. In a situation where there do not exist clear guidelines for selection between them, two methods do not always guarantee the same group decision result. We propose a simulation approach for building group consensus without efforts to make point estimates from individual diverse preference judgments, displaying possible disagreements as is natural in group members'different viewpoints.

Development of Analytic Dicho-Hierarchy Process for Setting Priority of Technological Alternatives (기술대체안의 운선순위 설정을 위한 2분화 계층분석방법의 개발)

  • 조근태;권철신
    • Proceedings of the Technology Innovation Conference
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    • 2000.06a
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    • pp.35-46
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    • 2000
  • The Analytic Hierarchy Process(AHP) model developed by Saaty is a very useful decision-making model designed for selecting and evaluating project alternatives through $\ulcorner$pairwise comparison$\lrcorner$ in the context of hierarchical structure. In this paper, we construct a modified AHP model named Analytic Dicho-Hierarchy Process (ADHP) model necessary for evaluating technology alternatives.

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A decision making framework model for the selection of a RP using hybrid multiple attribute decision making techniques (3차원 조형장비 선정을 위한 복합 다요소 의사결정 구조 모델 개발에 관한 연구)

  • Byun, Hong-Seok
    • Journal of the Korean Society of Manufacturing Process Engineers
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    • v.7 no.3
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    • pp.87-95
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    • 2008
  • The purpose of this study is to provide a decision support to select an appropriate rapid prototyping(RP) machine that suits the application of a part. Selection factors include concept model, form/fit/functional model, pattern model for molding, material property, build time and part cost that greatly affect the performance of RP machines. However, the selection of a RP is not an easy decision because they are uncertain and vague. For this reason, the aim of this research is to propose hybrid multiple attribute decision making approaches to effectively evaluate RP machines. In addition, because subjective considerations are relevant to selection decision, a fuzzy logic approach is adopted. The proposed selection procedure consists of several steps. First, we identify RP machines that the users consider. After constructing the evaluation criteria, we calculate the weights of the criteria by applying the fuzzy Analytic Hierarchy Process(AHP) method. Finally, we construct the fuzzy Technique of Order Preference by Similarity to Ideal Solution(TOPSIS) method to achieve the ranking order of all machines providing the decision information for the selection of RP machines.

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A fuzzy multi-criteria decision making methodology for small and medium enterprises evaluation under intersectional dependence relations (교차종속관계하에서의 중소기업 평가를 위한 Fuzzy 다기준의사결정법)

  • 박영화;이상완
    • Korean Management Science Review
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    • v.14 no.1
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    • pp.11-29
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    • 1997
  • This paper presents the better efficient evaluation of the Small and Medium Enterprises by use of fuzzy multi-criteria decision making methodology under intersectional dependence relations. The five Small and Medium Enterprises alternative will be evaluated by Fuzzy Analytic Hierarchy Process(FAHP) based on entropy weight in this study. A case study is presented to illustrate the use of entropy weight measurement with intersectional dependence problems. These problems are evaluated seven criteria : market criteria, thchnology criteria, management ability criteria, planning criteria, propulsion ability criteria, project propulsion basis criteria, propulsion result criteria.

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An Effectve Multi-Criteria Decision Making Methodology based on Entropy Weights in the Intersectional Dependence Relations (엔트로피 가중치를 고려한 교차종속관계하에서의 효율적인 다기준의사결정법)

  • 박영화;이상환
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.19 no.39
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    • pp.265-274
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    • 1996
  • This paper presents the intersectional dependence relations for the better efficient evaluation of the three tactical missile system(T.M.S) by use of multi-criteria decision making methodology. T.M.S alternatives A, B and C will be evaluated by Analytic Hierarchy Process(AHP) based on entropy weight in this study. A numerical example is presented to illustrate the use of entropy weight measurement with intersectional dependence problems. This problems are evaluated five criteria : tacticals criteria, technology criteria, maintenance criteria, economy criteria, advancement criteria.

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Target Market Selection Using MCDM Approach: A Study of Rolling Stock Manufacturer

  • SUKOROTO, SUKOROTO;HARYONO, Siswoyo;KHARISMA, Bedy
    • Journal of Distribution Science
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    • v.18 no.7
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    • pp.63-72
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    • 2020
  • Purpose: This study examines the market segmentation and strategy of PT INKA, a rolling stock manufacturer in Indonesia. Research design, data and methodology: The study used the MCDM (Multiple Criteria Decision Making) method specifically the AHP (Analytical Hierarchy Process). The AHP method was applied to identify the target market. This method or approach considers the market attractiveness and competitive strength criteria with quantified parameters. Results: a) Australia, Kenya, Tanzania, New Zealand, and India emerge as the top five target markets; b) There is justification for rolling stock manufacturers to allocate their resources in winning the market share. Conclusion: The main challenge confronting the rolling stock manufacturer is limited resources to acquire a particular market share despite abundant opportunities in this sector. Despite the mastery of technology and long experience in the industry, selecting a target market with multiple criteria could be difficult for an emerging rolling stock manufacturer in South East Asia.

Strategic Allocation of the Limited Same Resource by Program Management Office Considering Financial Values (재무 가치를 고려한 PMO의 전략적 동일 한정 자원 배분)

  • Hwang, Jin-Ha;Kim, Ju-Han;Hwang, Jee-Yeon
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.35 no.3
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    • pp.24-31
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    • 2012
  • Priority rules or sequencing heuristics conventionally used to determine resource allocation is to maximize the earned value on time and cost. This study provides a effective strategy-oriented approach for the program resource management problem with limited same resource, which systematically connects individual project objectives to the overall organizational goal, by introducing financial values as well as priority rules in a broader context. It deals with the resource allocation problem as the decision making problem in the strategic management paradigm to meet business objective and solves it using the analytic hierarchy process, and explains the method of application and usefulness through some simulation cases.

A Study on the Selection of the Telecommunication Company Using an Analytical Hierarchy Technique (계층분석기법을 이용한 이동통신사 선정에 관한 연구)

  • Seo, Kwang-Kyu;Lee, Hwa-Soo;Yun, Hye-Seong
    • Proceedings of the KAIS Fall Conference
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    • 2006.11a
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    • pp.331-334
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    • 2006
  • This paper proposes the selection model of the telecommunication company using an analytical hierarchy technique. When selecting a telecommunication company, consumers conflict the difficulty in decision-making because there are many competitive and complementary factors of telecommunication companies. To select an optimum telecommunication company, consumers need to consider a number of different quantitative and qualitative factors such as fare, various services, additional function and so on. In this study, we develop the method for selecting the telecommunication company considering various factors to help consumers' decision-making for their benefits.

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