Resource decision making for vertical and horizontal integration problems in an enterprise

Abstract

Resource decision making is complex and variable when considering the vertical integration problem (VIP) and the horizontal integration problem (HIP) in an enterprise. The VIP involves sharing the enterprise’s resource or information with the suppliers and customers as directly as possible to increase all participants’ profits. On the other hand, the HIP considers allying with other competitors when the enterprise is short of the needed resources. The challenges associated with the VIP and HIP are usually dependent and inseparable. In this paper, the integral method called dummy goal programming is proposed to deal with the HIP and VIP simultaneously. On the basis of our numerical example, we can conclude that this proposed method can cope with these problems completely and that it provides the overall aspiration level for the enterprise.

Keywords:

• resource decision making
• vertical integration problem (VIP)
• horizontal integration problem (HIP)
• dummy goal programming (DGP)