An integrated approach of AHP and DEMATEL methods in evaluating the criteria of auto spare parts industry

Abstract

This study uses both analytic hierarchy process (AHP) and decision-making trial and evaluation laboratory (DEMATEL) methods to evaluate the criteria in auto spare parts industry in Taiwan. Traditionally, AHP does not consider indirect effects for each criterion and assumes that criteria are independent without further addressing the interdependence between or among the criteria. Thus, the importance computed by AHP can be viewed as short-term improvement opportunity. On the contrary, DEMATEL method not only evaluates the importance of criteria but also depicts the causal relations of criteria. By observing the causal diagrams, the improvement based on cause-oriented criteria might improve the performance effectively and efficiently for the long-term perspective. As a result, the major advantage of integrating AHP and DEMATEL methods is that the decision maker can continuously improve suppliers’ performance from both short-term and long-term viewpoints.

Keywords:

• auto parts industry
• analytic hierarchy process
• DEMATEL
• causal relation
• suppliers’ performance