Implementing of a three-phase integrated decision support model for parts machining outsourcing

Abstract

Parts machining outsourcing (PMO) can be regarded as a strategic weapon to increase product quality and productivity as well as cost cutting in many manufacturing enterprises. However, making an outsourcing decision based on accumulated experience is neither effective nor scientific due to subjective judgement and lack of systematic analysis. Therefore, to systematically help the decision-maker survey and select suppliers to outsource and also to timely achieve the most beneficial portfolio among suppliers in a non-cooperative game structure, this paper proposes an integrated decision support model for PMO using ontology, constraint-based reasoning, fuzzy VIKOR and game theory in three phases, namely supplier prequalification, ultimate selection and order coordination. In the decision-making process, decision factors such as quality, cost and production capability are categorised and put into different phases, respectively, by their characteristics for being measured at a more reasonable method. Finally, a case from a leading printing machinery enterprise is analysed to validate the proposed model. This research is expected to improve the quality and effectiveness of decision-making in PMO.

Keywords:

• PMO
• decision support
• ontology
• fuzzy VIKOR
• Stackelberg game
• ICA

Funding

The research work presented in this paper is under the support of both National S&T Support Project in the 12th Five-Year Plan with [grant number 2012BAH08F06] and NSFC with [grant number 51275396].