WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 10, 2013
Supply Chain Alliance Factors Evaluation by the Delphi-AHP Method
Authors: , ,
Abstract: Taiwanese firms are mainly small and medium-sized, and using alliances to restructure logistical activities, combined with external resources, are excellent methods for gaining competitive advantage. Deciding on the location of a distribution center for alliance is therefore a critical issue. We use the Delphi and the Analytic Hierarchy Process (AHP) to develop a decision hierarchy, and analyze factor and criteria priorities. The Delphi-AHP method provides a good connection between qualitative and quantitative elements that influence multiple criteria decision-making. The analytical results indicate that to improve operation performance, managers should integrate their firms’ specializations with those of their partners. Therefore, an alliance strategy that relies on the distribution center location should emphasize industrial clusters. Other factors influencing the decision-making of distribution center location include costs, demand, and logistical support.
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Keywords: Supply chain management, Distribution center, Alliance, Delphi, Analytic hierarchy process (AHP)