A HYBRID MCDM METHOD TO EVALUATE SUPPLY-CHAIN DEVELOPMENT STRATEGIES

Abstract

Global logistics and outsourcing have become an irreversible industrial development trend in today's technology industry. Previous studies differ on supplier selection, supplier development, and supply-chain performance assessment evaluation methods. Research suggests that outsourcing is not only a program of options, but also results in different operating performances based on varying company supply-chain strategies. To build a competitive supply chain, companies must conduct a comprehensive assessment and develop a clear and explicit supply-chain development strategy. This research derives a composite method for assessing supply-chain strategy. A decision-making trial and evaluation laboratory method first clarify six major areas of supply-chain strategy assessment, and then draw a network impact-relationship map based on the direction of influence and extent of the impact in each area. An analytic network process then captures the interdependence between the evaluating factors, and identifies the relative weight of these criteria for each major factor in the supply-chain development strategy. Finally, the study develops an effective supply-chain strategy decision-making assessment model to help companies select an optimal strategy. Examining the world's top 4 TFT-LCD factories validates the results of this study.