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Feasibility of Analytical Hierarchy Process as a Tool for Reshoring Decisions
Högskolan i Jönköping.ORCID iD: 0000-0002-8305-4412
2019 (English)In: Proceedings of the 9th International Conference on Operations and Supply Chain Management, Vietnam, 2019, OSCM , 2019Conference paper, Published paper (Refereed)
Abstract [en]

Reshoring decision making is least explored as these decisions are complex and timeconsuming. Numerous quantitative and qualitative criteria need to be considered in the decision-making. The existing decision-making tools are few and theoretical and lack automatic decision support capabilities. Therefore, there is a need of automatic and rapid decision support tool for reshoring decision making. One of the more well-known systematic decision-making tools is analytical hierarchy process (AHP) that has been used to handle complex decision problems in operations management domain. This study aims to investigate the feasibility of AHP as a tool for reshoring decision-making. In order to achieve this, the AHP was applied to six reshoring criteria on an overall level, which also correspond to competitive priorities. First, a hierarchy of criteria was constructed, then the pairwise comparison of each criteria pair was made, then the final priority weights of the criteria were calculated, and finally the consistency of the comparisons was checked. The criteria Quality and Cost obtained higher priority weights in reshoring decision. Later, the final priority weights of the criteria were used to evaluate fifteen different reshoring decision scenarios and compared against reshoring expert’s opinion. It was found that thirteen of these decision evaluations were correct on comparing the AHP outputs and the expert’s opinion. Only two of the evaluations were not in agreement, however the confidence values on these decisions were very small. Therefore, this research shows that AHP is a feasible tool for reshoring decision making on an overall level of criteria. The tool can be adapted to different decision makers and different reshoring types. The tool provides automatic support for reshoring decisions.

Place, publisher, year, edition, pages
OSCM , 2019.
Keywords [en]
Reshoring decision making, AHP, Decision support tool, Manufacturing location., Production Engineering, Human Work Science and Ergonomics, Produktionsteknik, arbetsvetenskap och ergonomi
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:hig:diva-31736OAI: oai:DiVA.org:hig-31736DiVA, id: diva2:1394349
Conference
9th International Conference on Operations and Supply Chain Management (OSCM), 15 – 18 December, 2019,Ho Chi Minh City, Vietnam
Available from: 2020-02-18 Created: 2020-02-18 Last updated: 2020-03-06Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard-cite-them-right
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • sv-SE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • de-DE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf