A hybrid approach based on ANP, ELECTRE and SIMANP metaheuristic method for outsourcing manufacturing procedures according to supply chain risks - Case study: A medical equipment manufacturer company in Iran

• Main Authors: Hiwa Farughi, Sobhan Mostafayi
• Format: Article
• Language: English
• Published: Growing Science 2017-01-01
• Series: Decision Science Letters
• Subjects: Supply chain risks; Combined multi criteria decision making; ANP network analysis process; ELECTRE method; Improvement of manufacturing processes; SIMANP metaheuristic algorithm
• Online Access: http://www.growingscience.com/dsl/Vol6/dsl_2016_19.pdf

Nowadays enterprises should consider seeking to reduce the supply chain risks as a crucial part of their activities in order to improve their competitiveness in the international context. Choosing the suitable strategy in connection with assigning some parts of the production process to outside the organization is a complex multi-criteria decision making problem and it gets more complicated when supply chain risk factors as the factors to select the strategy as well as dependence and the close ties between these criteria also be considered. In this paper, after the identification of risks in the supply chain of a medical equipment manufacturer company, dependence and ties between criteria in line with choosing the best strategy among existing alternatives has been examined in the form of a combined ANP-ELECTRE method. This combined model is of high performance to give a solution to the problem considered in this paper. But given the complex and time consuming nature of the AHP and ELECTRE, in this study a meta-heuristic algorithm is developed called SIMANP that despite the simplicity of computing and high-speed, is good in the terms of precision and efficiency. The results of comparing SIMANP algorithm and the proposed ANP - ELECTRE method are presented at the end.