A novel hybrid model for selection of an outsourcing provider in airline industry

摘要

Globalization has pushed the outsourcing become an inevitable strategy for firms thatreduce operating costs and improve their competitiveness. But a successful outsourcingactivity depends on the selection of appropriate outsourcing providers. Some efforts havebeen made to find systematic ways to deal with outsourcing problems, but these effortsassumed that the criteria used in the decision process are independent, which is not true inthe real world. In this study, we propose a new hybrid multiple criteria decision-making(MCDM) model, which addresses the dependent relationships between the various criteria.The relations-structure among the criteria and weights of criteria are built with the aid ofthe DANP (Decision Making Trial and Evaluation Laboratory and Analytical NetworkProcess) method. A modified grey relationship method is then used to prioritize thealternatives. The proposed model can help practitioners improve their decision processes,especially when criteria are numerous and inter-related. Throughout our study, we use datafrom a Taiwanese airline to demonstrate this method.