DCM: D Number Extended Cognitive Map. Application on Location Selection in SCM

Lian Zhou, Fuyuan Xiao

Abstract


Offshore outsourcing is a widely used management technique for performing business functions with the aim of reducing labor and transportation costs. The selection of locations has a significant influence on the supply chain’s resilience and qualities, but the influence of multiple external factors on the supply chain’s performance in local places in a complex and uncertain environment has not been examined. In this study, we investigated the influence of external factors in a highly uncertain and complicated situation in which relationships between external factors and supply chain resilience are complicated. Furthermore, we proposed a novel model to select locations from a comprehensive perspective. Specifically, the fuzzy cognitive map (FCM) is utilized to simulate the dynamic influence process where the adjacency is aggregated by D numbers. The weights of different resilience capabilities are considered from the perspective of maximizing benefits by using the decision-making trial and evaluation laboratory-analytic network processes (DEMATEL-ANP) model. By comparing the distance to the ideal solutions, we selected the best alternative location. Our results differ from the general case, which reveals that the weights of different capabilities influence selections.

Keywords


Offshore outsourcing; Supply chain resilience; Location selection; FCM; D number; DEMATEL-ANP; Multicriteria decision making

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References


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DOI: https://doi.org/10.15837/ijccc.2019.5.3585



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