Web-based multi-attribute analysis model for make-or-buy decisions

  • Authors:
  • Heung Suk Hwang;Wen-Hwa Ko;Meng-Jong Goan

  • Affiliations:
  • Collegeof Port & Logistics, TongMyong University, 535, Yongdang-Dong, Nam-Gu, Busan, 608-711, Republic of Korea;Department of Business Tourism and Hospitality Management, Kainan University, Taiwan No. 1 Kainan Rd., Lu-jhu, Taoyuan, 338, Taiwan;Department of Information Management, Kainan University, No. 1 Kainan Rd., Lu-jhu, Taoyuan, 338, Taiwan

  • Venue:
  • Mathematical and Computer Modelling: An International Journal
  • Year:
  • 2007

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Abstract

This paper is concerned with the make-or-buy decision model for manufacturing and procurement problems. We developed a web-based two-step approach as follows: (1) for the first step, we used the multi-attribute analysis method using the AHP (analytic hierarchy process); and (2) for the second step we, used fuzzy set ranking methodologies to integrate the special decision problems that are problems involving multi-objectives, multi-criteria, and multi-attributes. We propose a procedure for integrating the comparative judgments and priorities for make-or-buy decisions and for the optimal resource allocation. First, we determine the rank-ordered priority lists of the projects based on the AHP, and then we compute the aggregate fuzzy set rank order. Finally, we develop a systematic and practical program for a simple and easy calculation of all the algorithms used in this study. It is found that the proposed model can be validated by comparative computations in various make-or-buy example problems for a cellular manufacturing system.