In this paper, a decision-making model for outsourcing the logistics system was developed using the Analytic Hierarchy Process (AHP). With this technique, several options are considered in the decision analysis that make it possible to adequately evaluate and determine whether outsourcing the logistics distribution may be beneficial or not for the company.
The case example given in this paper proves that AHP can be used effectively to analyze the outsourcing decision for logistics distribution. It is expected to provide practitioners with the systematic analysis needed to make this important decision. Most companies are adopting the services of third-party providers for their distribution systems. This outsourcing is playing an important role in enabling companies to concentrate on their core operations. In this paper, the AHP has been proposed as an impending tool for analyzing the outsourcing decision for distribution. The advantage is that AHP has the ability to handle complex, multi-criteria, qualitative decision variables involved in the distribution-outsourcing decision-making process.
The case example given in this paper proves that AHP can be used effectively to analyze the outsourcing decision for distribution. The important factors, their relative importance and influences on the objective of our decision-making model were found. Based on AHP analyze, they find that outsourcing the distribution is the preferable alternative.
A Multi-Criteria Logistics-Outsourcing Decision Making Using the Analytic Hierarchy Process written by Chandandeep Singh Grewal, Kuldeep Kumar Sareen, and Sumit Gill, International Journal Services Technology and Management, 2008, Vol. 9, No. 1.
Written by : Denmas
Tuesday, December 23, 2008
Subscribe to:
Posts (Atom)
