Applying AHP to the Strategy Selection of Outsourcing in LED Industry

• Main Authors: Chih-Sung Wang, 王志崧
• Other Authors: Ruey-Yih Lin
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/20638874225609355615

碩士 === 華梵大學 === 工業工程與經營資訊學系碩士班 === 96 === Almost 80% of related lighting manufactures are medium to small scale enterprises. With limited resources and economic scale, division activities are commonly seen and diversified in the lighting industry. The relationships between lighting manufactures are usually both cooperative and competitive. When a manufacture makes a strategic outsourcing decision, it has to not only take the cost and benefit of outsourcing into consideration, but to pay attention to the competition status between each other to prevent the transfer of market leading position due to over dependence and suppliers’ over growing. Therefore, the evaluation of made or buy strategy becomes an important issue of lighting manufactures. This research, using analytic hierarchy process (AHP), aims to explore the made or buy decisions of LED lighting products. To process the outsourcing decision about the LED lighting products of the China Electric Co., 24 major variables of product self-manufacture or outsourcing decisions are sorted out from related literatures. Through the brainstorm of the experts, these variables can be categorized into four criteria: “resource evaluation factor,” “competitiveness factor,” “administration strategy evaluation factor,” and “business benefit factor.” Under the four main factors, there are ten sub-criteria and 5 alternatives of products outsourcing evaluation framework. After the evaluation by the experts, alternative “75% self-manufacture” is the best choice for the LED products of China Electric Co. made or buy strategy. Moreover, when the 4 main evaluation elements are analyzed, “business benefit factor” is considered the primary, and “resource factor” is considered the secondary. Therefore, the operation performance and resource application consideration are still most valued in the lighting industry. Besides, compared to the previous two factors, even though ” competitiveness” and “administration strategy” factors receive relatively lower importance value, their weights still have considerable importance, showing that the lighting industry is still paying certain degree of attention to these two factors. Moreover, although the sensitivity analysis shows that “competitiveness factor” and “return on investment” criteria have certain effects on alternative priority, the change of their weights are not influential enough to have an impact on the final result. Therefore, “75% self-manufacture” strategy is the best alternative.