Skip to main content
SpringerLink
Log in

Combined DEMATEL technique with hybrid MCDM methods for creating the aspired intelligent global manufacturing & logistics systems

  • Published:
Annals of Operations Research Aims and scope Submit manuscript

Abstract

The concept of globalization has been prosperous in the past decades while manufacturing as well as logistics have already become one of the most significant issues in the globalization era. However, while modern globalized firms are leveraging both global manufacturing resources as well as logistics systems for pursuing higher quality, lower cost as well as product differentiation, how to evaluate, selecting an appropriate global manufacturing strategy by considering issues from both aspects of global manufacturing as well as logistics has become one of the most critical and difficult issues. Moreover, how the chosen intertwined global manufacturing as well as logistics system is to be optimized so that the aspired level of the global manufacturing system can be achieved have few been addressed. Thus, this research aims to resolve the above mentioned global manufacturing and logistics strategy selection as well as system reconfiguration issue. A Decision Making Trial and Evaluation Laboratory (DEMATEL) technique based novel multiple criteria decision making (MCDM) method with Analytic Network Process (ANP), Grey Relational Analysis (GRA) as well as VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) will be proposed for selecting and re-configuring the aspired global manufacturing and logistics system. An empirical study based on the global manufacturing and logistics system design of a semiconductor company will be provided for verifying the effectiveness of this proposed methodology.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Abele, E., Elzenheimer, J., Liebeck, T., & Meyer, T. (2006). Globalization and decentralization of manufacturing. In A. I. Dashchenko (Ed.), Reconfigurable manufacturing systems and transformable factories. Berlin: Springer.

    Google Scholar 

  • Acur, N., Gertsen, F., Sun, H., & Frick, J. (2003). The formalisation of manufacturing strategy and its influence on the relationship between competitive objectives, improvement goals, and action plans. International Journal of Operations and Production Management, 23(10), 1114–1141.

    Article  Google Scholar 

  • Ahmad, N., & Laplante, P. A. (2009). Using the Analytical Hierarchy Process in selecting commercial real-time operating systems. International Journal of Information Technology Decision Making, 8(1), 151–168.

    Article  Google Scholar 

  • Brinker, B. J. (1994). Activity-based management: emerging practices in cost management. Boston: Warren, Gorham & Lamont.

    Google Scholar 

  • Bose, D. C. (2006). Inventory management. New Delphi: Prentice-Hall.

    Google Scholar 

  • Bowersox, D. J., Daugherty, P. J., Droge, C. L., Rogers, D. S., & Wardlow, D. L. (1990). Leading edge logistics competitive positioning for the 1990s. Cincinatti: Council of Logistics Management.

    Google Scholar 

  • Bowersox, D. J., & Closs, D. J. (1996). Logistical management: the integrated supply chain process. New York: McGraw-Hill.

    Google Scholar 

  • Brown, S. (1998). Manufacturing strategy: manufacturing seniority and plant performance in quality. Journal of Operations and Production Management, 18(6), 565–587.

    Article  Google Scholar 

  • Chen, S. J., & Hwang, C. L. (1992). Fuzzy multiple attribute decision making: methods and applications. Berlin: Springer-Verlag.

    Book  Google Scholar 

  • Chiou, H. K., & Tzeng, G. H. (2001). Fuzzy hierarchical evaluation with Grey relation model of green engineering for industry. International Journal of Fuzzy Systems, 3(3), 466–475.

    Google Scholar 

  • Chiu, Y. J., Chen, H. C., Tzeng, G. H., & Shyu, J. Z. (2006). Marketing strategy based on customer behavior for the LCD-TV. International Journal of Management and Decision Making, 7(2–3), 143–165.

    Article  Google Scholar 

  • Chow, H. K. H., Choy, K. L., Lee, W. B., & Chan, F. T. S. (2005). Design of a knowledge-based logistics strategy system. Expert Systems With Applications, 29(2), 272–290.

    Article  Google Scholar 

  • Clark, J. P. (2008). Practical design, construction and operation of food facilities. New York: Academic Press.

    Google Scholar 

  • Cooper, J. C. (1993). Logistics strategies for global businesses. International Journal of Physical Distribution and Logistics Management, 23(4), 12–23.

    Article  Google Scholar 

  • Corbett, C., & Van Wassenhove, L. (1993). Trade-offs? What trade-offs? Competence and competitiveness in manufacturing strategy. California Management Review, 35(4), 107–122.

    Google Scholar 

  • Cox, J. F. I., Blackstone, J. H., & Spencer, M. S. (1998). APICS dictionary (9th edn.). Falls Church: American Production and Inventory Control.

    Google Scholar 

  • Dalkey, N., & Helmer, O. (1963). An experimental application of the Delphi method to the use of experts. Management Science, 9(3), 458–467.

    Article  Google Scholar 

  • Dangayach, G. S., & Deshmukh, S. G. (2001). Manufacturing strategy: Literature review and some issues. International Journal of Operations and Production Management, 21(7), 884–932.

    Article  Google Scholar 

  • Dangayach, G. S., & Deshmukh, S. G. (2006). An exploratory study of manufacturing strategy practices of machinery manufacturing companies in India. Omega, 34(3), 254–273.

    Article  Google Scholar 

  • Deng, J. (1982). Control problems of grey systems. Systems and Control Letters, 5(2), 288–294.

    Google Scholar 

  • Deng, J. L. (1985). Fundamental methods of grey systems. Wuhan: Huazhoug University of Science and Technology Press.

    Google Scholar 

  • Deng, J. L. (1986). Grey forecasting and decision. Wuhan: Huazhong University of Science and Technology Press.

    Google Scholar 

  • Deng, J. L. (1988). Grey system book. Windsor: Science and Technology Information Services.

    Google Scholar 

  • Deng, J. L. (1989). Introduction of grey theory. The Journal of Grey System, 1(1), 1–24.

    Google Scholar 

  • DIANE Publishing Company (2004). 21st centuty manufacturing: national initiative for product data exchange: product data exchange baseline activity. Darby: DIANE Publishing Company.

    Google Scholar 

  • Fabbe-Costes, N., & Colin, J. (2007). Formulating Logistics Strategy. In D. Waters (Ed.), Global logistics: new directions in supply Chain management (5th ed., pp. 33–54). London: Kogan Page Publishers.

    Google Scholar 

  • Fawcett, S. E. (1992). Strategic logistics in co-ordinated global manufacturing success. International Journal of Production Research, 30(5), 1081–1099.

    Article  Google Scholar 

  • Freimer, M., & Yu, P. L. (1976). Some new results on compromise solutions for group decision problems. Management Science, 22(6), 688–693.

    Article  Google Scholar 

  • Gabus, A., & Fontela, E. (1972). World problems an invitation to further thought within the framework of DEMATEL. Geneva: Battelle Geneva Research Centre.

    Google Scholar 

  • Ghiani, G., Laporte, G., & Musmanno, R. (2004). Introduction to logistics systems planning and control. New York: Wiley.

    Google Scholar 

  • Goldsby, T. J., & Martichenko, R. (2003). Lean six sigma logistics: strategic development to operational success. Boca Raton: Ross Publishing.

    Google Scholar 

  • Graf, H. (2006). Innovative logistics is a vital part of transformable factories in the automotive industry. In A. I. Dashchenko (Ed.), Reconfigurable manufacturing systems and transformable factories. Berlin: Springer.

    Google Scholar 

  • Gupta, N. S., & Valarmathi, B. (2009). Total quality management. New Delhi: McGraw-Hill.

    Google Scholar 

  • Haq, A., & Kannan, G. (2006). An integrated approach for selecting a vendor using grey relational analysis. International Journal of Information Technology and Decision Making, 5(2), 277–295.

    Article  Google Scholar 

  • Hill, S. (1994). Want better customer service? Think logistically. Manufacturing Systems, 12(3), 11.

    Google Scholar 

  • Hill, C. W. L. (2008). Global Business Today (5th edn.). New York: McGraw-Hill Irwin.

    Google Scholar 

  • Ho, W.-R. J., Tsai, C. L., Tzeng, G. H., & Fang, S. K. (2011). Combined DEMATEL technique with a novel MCDM model for exploring portfolio selection based on CAPM. Expert Systems with Applications, 38(1), 16–25.

    Article  Google Scholar 

  • Huang, C. Y., Shyu, J. Z., & Tzeng, G. H. (2007). Reconfiguring the innovation policy portfolios for Taiwan’s SIP Mall industry. Technovation, 27(12), 744–765.

    Article  Google Scholar 

  • Huang, J. J., Tzeng, G. H., & Ong, C. S. (2005). Multidimensional data in multidimensional scaling using the analytic network process. Pattern Recognition Letters, 26(6), 755–767.

    Article  Google Scholar 

  • Hubner, R., & Gunther, H. O. (2007). Using AHP for strategic production site assessment: a case study from specialty chemicals industry. In H. O. Gunther, D. C. Mattfeld, & L. Suhl (Eds.), Management logistischer netzwerke. Berlin: Physica-Verlag HD.

    Google Scholar 

  • Hwang, C. L., & Yoon, K. (1981). Multiple attribute decision making. Berlin: Springer.

    Book  Google Scholar 

  • Jharkharia, S., & Shankar, R. (2007). Selection of logistics service provider: An analytic network process (ANP) approach. Omega, 35(3), 274–289.

    Article  Google Scholar 

  • Jiao, J., You, X., & Kumar, A. (2006). An agent-based framework for collaborative negotiation in the global manufacturing supply chain network. Robotics and Computer-Integrated Manufacturing, 22(3), 239–255.

    Article  Google Scholar 

  • Jones, J., & Hunter, D. (1995). Qualitative Research: Consensus methods for medical and health services research. British Medical Journal, 311(5), 376–380.

    Article  Google Scholar 

  • Koksalan, M., & Tuncer, C. (2009). A DEA-based approach to ranking multi-criteria alternatives. International Journal of Information Technology & Decision Making, 8(1), 29–54.

    Article  Google Scholar 

  • Kuan, M. J., Tzeng, G. H., & Chia-Chun Hsiang, C. C. (2011). Exploring the quality assessment system for new product development process by combining DANP with MCDM Model, International Journal of Innovative Computing, Information and Control. Forthcoming.

  • Lee, H., Lee, S., & Park, Y. (2009). Selection of technology acquisition mode using the analytic network process. Mathematical and Computer Modelling, 49(5/6), 1274–1282.

    Article  Google Scholar 

  • Lembersky, M., & Lembersky, L. (2005). Modern manufacturing technology & cost estimation: a systematic approach with engineering vision. Bloomington: Author House.

    Google Scholar 

  • Leon, A. (2005). Software configuration management handbook (2nd edn.). Norwood: Artech House.

    Google Scholar 

  • Li, H. L., & Ma, L. C. (2008). Ranking decision alternatives by integrated DEA, AHP and gower plot techniques. International Journal of Information Technology & Decision Making, 7(2), 241–258.

    Article  Google Scholar 

  • Lin, C. J., & Wu, W. W. (2008). A causal analytical method for group decision-making under fuzzy environment. Expert Systems With Applications, 34(1), 205–213.

    Article  Google Scholar 

  • Linstone, H. A., & Turoff, M. (1975). The delphi method: techniques and applications. Reading: Addison–Wesley.

    Google Scholar 

  • Liou, J. J. H., Tzeng, G. H., & Chang, H. C. (2007). Airline safety measurement using a hybrid model. Air Transport. Management, 13(4), 243–249.

    Google Scholar 

  • Macher, J. T., Mowery, D. C., & Simcoe, T. S. (2002). E-business and disintegration of the semiconductor industry value chain. Industry and Innovation, 9(3), 155–181.

    Article  Google Scholar 

  • Maki, H., & Teranishi, Y. (2001). Development of automated data mining system for quality control in management. Lecture Notes in Computer Science, 2114, 93–100.

    Article  Google Scholar 

  • McGrath, M. E., & Hoole, R. W. (1992). Manufacturing’s new economies of scale. Harvard Business Review, 70(3), 94–102.

    Google Scholar 

  • McGrath, M. E. (2001). Product strategy for high technology companies: accelerating your business to web speed (2nd edn.). New York: McGraw-Hill.

    Google Scholar 

  • Minor, E. D., Hensley, R. L., & Wood, D. R. (1994). A review of empirical manufacturing strategy studies. International Journal of Operations & Production Management, 14(1), 5–25.

    Article  Google Scholar 

  • Mon, D. L., Tzeng, G. H., & Lu, H. C. (1995). Grey decision making in weapon system evaluation. Journal of Chung Chen Institute of Technology, 26(1), 73–84.

    Google Scholar 

  • Opricovic, S., & Tzeng, G. H. (2002). Multicriteria planning of post-earthquake sustainable reconstruction. Computer-Aided Civil and Infrastructure Engineering, 17(3), 211–220.

    Article  Google Scholar 

  • Opricovic, S., & Tzeng, G. H. (2003). Fuzzy multicriteria model for post earthquake land-use planning. Natural Hazards Review, 4(2), 59–64.

    Article  Google Scholar 

  • Opricovic, S., & Tzeng, G. H. (2004). Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156(2), 445–455.

    Article  Google Scholar 

  • Opricovic, S., & Tzeng, G. H. (2007). Extended VIKOR method in comparison with outranking methods. European Journal of Operational Research, 178(2), 514–529.

    Article  Google Scholar 

  • Opricovic, S. (1998). Multicriteria optimization of civil engineering systems. Belgrade: Faculty of Civil Engineering.

    Google Scholar 

  • Ou Yang, Y. P., Shieh, H. M., & Tzeng, G. H. (2009). A VIKOR-based multiple criteria decision method for improving information security risk. International Journal of Information Technology and Decision Making, 8(2), 1–21.

    Google Scholar 

  • Pang, P. N. T. (2004). Essentials of manufacturing engineering management. Lincoln: iUniverse.

    Google Scholar 

  • Peng, Y., Kou, G., Shi, Y., & Chen, Z. (2008). A descriptive framework for the field of data mining and knowledge discovery. International Journal of Information Technology & Decision Making, 7(4), 639–682.

    Article  Google Scholar 

  • Pontrandolfo, P., & Okogbaa, O. G. (1999). Global manufacturing: a review and a framework for planning in a global corporation. International Journal of Production Research, 37(1), 1–19.

    Article  Google Scholar 

  • Porter, M. (1985). Competitive advantage: creating and sustaining superior performance. New York: Free Press.

    Google Scholar 

  • Prokopenko, J. (1987). Productivity management: a practical handbook. Geneva: International Labour Organization.

    Google Scholar 

  • Riveros, L. (1988). International comparisons of wage and non-wage costs of labor. Washington: World Bank.

    Google Scholar 

  • Riveros, L. (1989). The impact of labor costs on manufactured exports in developing countries: an econometric analysis. Washington: World Bank.

    Google Scholar 

  • Saaty, R. W. (2003). The analytic hierarchy process (AHP) for decision making and the analytic network process (ANP) for decision making with dependence and feedback foundation. Pittsburgh: Creative Decisions Foundation.

    Google Scholar 

  • Saaty, T. L. (1996). Decision making with dependence and feedback: the analytic network process. Pittsburgh: RWS.

    Google Scholar 

  • Saaty, T. L. (1999). Fundamentals of the analytic network process. In Proceedings of international symposium on analytical hierarchy process, 1999, Japan, Kobe.

    Google Scholar 

  • Saaty, T. L. (2004). Fundamentals of the analytic network process—dependence and feedback in decision-making with a single network. Journal of Systems Science and Systems Engineering, 13(2), 71–91.

    Article  Google Scholar 

  • Saaty, T. L. (2005). Theory and applications of the analytic network process—decision making with benefits, opportunities, costs, and risks. Pittsburgh: RWS.

    Google Scholar 

  • Scople, V. V. (2007). Logistics management the supply chain imperative. Singapore: Pearson Education.

    Google Scholar 

  • Skinner, W. (1969). Manufacturing—missing link in corporate strategy. Harvard Business Review, 47(3), 136–145.

    Google Scholar 

  • Slack, N., Chambers, S., & Johnston, R. (2001). Operations management. Harlow: Pearson Education Limited.

    Google Scholar 

  • Stock, G. N., Greis, N. P., & Kasarda, J. D. (1998). Logistics, strategy and structure. International Journal of Operations & Production Management, 18(1), 37.

    Article  Google Scholar 

  • Stummer, C., Kiesling, E., & Gutjahr, W. J. (2009). A multicriteria decision support system for competence-driven project portfolio selection. International Journal of Information Technology & Decision Making, 8(2), 379–401.

    Article  Google Scholar 

  • Swink, M., & Way, H. M. (1995). Manufacturing strategy. Propositions, current research, renewed directions. International Journal of Operations and Production Management, 15(7), 4–26.

    Article  Google Scholar 

  • Tamura, M., Nagata, H., & Akazawa, K. (2002). Extraction and systems analysis of factors that prevent safety and security by structural models. In Proceedings of the 41st SICE Annual Conference, Volume 3, Osaka, Japan (pp. 1752–1759).

    Chapter  Google Scholar 

  • Tuzkaya, G., Onut, S., Tuzkaya, U. R., & Gulsun, B. (2008). An analytic network process approach for locating undesirable facilities: An example from Istanbul, Turkey. Journal of Environmental Management, 88(4), 970–983.

    Article  Google Scholar 

  • Tzeng, G. H., & Tasur, S. H. (1994). The multiple criteria evaluation of grey relation model. The Journal of Grey System, 6(2), 87–108.

    Google Scholar 

  • Tzeng, G. H., Tsaur, S. H., Laiw, Y. D., & Opricovic, S. (2002b). Multicriteria analysis of environmental quality in Taipei: Public preferences and improvement strategies. Journal of Environmental Management, 65(2), 109–120.

    Article  Google Scholar 

  • Tzeng, G. H., Chiang, C. H., & Li, C. W. (2007). Evaluating intertwined effects in e-learning programs: a novel hybrid MCDM model based on factor analysis and DEMATEL. Expert Systems With Applications, 32(4), 1028–1044.

    Article  Google Scholar 

  • Tzeng, G. H., Lin, C. W., & Opricovic, S. (2005). Multi-criteria analysis of alternative-fuel buses for public transportation. Energy Policy, 33(11), 1373–1383.

    Article  Google Scholar 

  • Tzeng, G. H., Shiau, T. A., & Teng, J. J. (1994). Multiobjective decision-making approach to energy supply mix decisions in Taiwan. Energy Sources, 16(3), 301–316.

    Article  Google Scholar 

  • Tzeng, G. H., Teng, M. H., Chen, J. J., & Opricovic, S. (2002a). Multicriteria selection for a restaurant location in Taipei. International Journal of Hospitality Management, 21(2), 171–187.

    Article  Google Scholar 

  • Vastag, G., Kasarda, J. D., & Boone, T. (1994). Logistical support for manufacturing agility in global markets. International Journal of Operations and Production Management, 14(11), 73–85.

    Article  Google Scholar 

  • Velosa, A. (2005). Semiconductor Manufacturing: Boom Busts, and Globalization. The Bridge, 35(1).

  • Vickery, S. K. (1991). A theory of production competence revisited. Decision Sciences, 22(3), 635–643.

    Article  Google Scholar 

  • Voris, W. (1966). Production control: text and cases. Homewood: Richard D. Irwin.

    Google Scholar 

  • Warner, M. (1996). International encyclopedia of business and management. London: Routledge.

    Google Scholar 

  • Waters, D. (2007). Global logistics: new directions in supply chain management (5th edn.). London: Kogan Page Publishers.

    Google Scholar 

  • Westkämper, E. (2006). New trends in production. In A. I. Dashchenko (Ed.), Reconfigurable manufacturing systems and transformable factories. Berlin: Springer.

    Google Scholar 

  • Wu, H. S., Deng, J. L., & Wen, K. L. (1996). Introduction of grey analysis. Taiwan: Gau-Li Publication.

    Google Scholar 

  • Wu, W. W., & Lee, Y. T. (2007). Developing global managers’ competencies using the fuzzy DEMATEL method. Expert Systems With Applications, 32(2), 499–507.

    Article  Google Scholar 

  • Yoon, K. (1987). A reconciliation among discrete compromise solutions. The Journal of the Operational Research Society, 38(3), 272–286.

    Google Scholar 

  • Yu, P. L. (1973). A class of solutions for group decision problems. Management Science, 19(8), 936–946.

    Article  Google Scholar 

  • Zeleny, M. (1982). Multiple criteria decision making. New York: McGraw-Hill.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Graduate Institute of Project Management and Department of Business and Entrepreneurial Management, Kainan University, No. 1, Kainan Road, Luchu, Taoyuan, County 338, Taiwan

    Gwo-Hshiung Tzeng

  2. Institute of Management of Technology, National Chiao-Tung University, No. 1001, Ta-Hsueh Road, Hsin-Chu, 300, Taiwan

    Gwo-Hshiung Tzeng

  3. Department of Industrial Education, National Taiwan Normal University, No. 162, Hoping East Road I, Taipei, 106, Taiwan

    Chi-Yo Huang

Authors
  1. Gwo-Hshiung Tzeng
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Chi-Yo Huang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Gwo-Hshiung Tzeng.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Tzeng, GH., Huang, CY. Combined DEMATEL technique with hybrid MCDM methods for creating the aspired intelligent global manufacturing & logistics systems. Ann Oper Res 197, 159–190 (2012). https://doi.org/10.1007/s10479-010-0829-4

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10479-010-0829-4

Keywords

Search

Navigation