Developing a DEMATEL method to prioritize distribution centers in supply chain


Maghsud Amiri, Jamshid Salehi Sadghiyani, Nafiseh Payani and Mahdi Shafieezadeh


During the past two decades, there have been significant numbers of studies focusing on supply chain management for evaluating important factors on the success of a supply chain program. In this paper, we present a method to prioritize the locations of distribution centers in a supply chain. The proposed model of this paper uses balanced scorecard (BSC) to categorize the most important attributes affecting the location of distribution centers and the attributes are ranked based on decision making trial and evaluation laboratory (DEMATEL) method. The implementation of the proposed model of this paper is also applied for a real-world case study of oil company and the results are analyzed under different scenarios.


DOI: j.msl.2011.04.001

Keywords: Supply chain management (SCM) ,Distribution center (DC) ,Balanced scorecard (BSC) ,Decision making trial and evaluation laboratory (DEMATEL)

How to cite this paper:

Amiri, M., Sadghiyani, J., Payani, N & Shafieezadeh, M. (2011). Developing a DEMATEL method to prioritize distribution centers in supply chain.Management Science Letters, 1(3), 279-288.


References

Brewer, P. C., & Speh, T. W. (2000). Adapting the balanced scorecard to supply chain management. Supply Chain Management Review, 5(2), 48–56.

Bullinger, H.-J., Kühner, M., & Van Hoof, A. (2002). Analyzing supply chain performance using a balanced measurement method. International Journal of Production Research, 40(15), 3533–3543.

Chan, C. K., & Lee H. W. J. (2005). Successful Strategies in Supply Chain Management. Idea Group Inc.

Chopra, S., & Meindl, P. (2003). Supply chain management: Strategy, planning and operation. Upper Saddle River, NJ: Pearson Prentice Hall.

Chorafas, D. N. (2001). Integrating ERP, CRM, Supply Chain Management, and Smart Materials, CRC Press LLC Auerbach.

Chou, S., Chang Y., & Shen C. (2008). A fuzzy simple additive weighting system under group decision-making for facility location selection with objective/subjective attributes. European Journal of Operational Research, 189, 132-145.

Chu T.-C. (2002). Selecting plant location via a fuzzy TOPSIS approach. International Journal of Advanced Manufacturing Technology, 20, 859–864.

Chu T.-C., & Lai M.-T. (2005). Selecting distribution centre location using an improved fuzzy MCDM approach. International Journal of Advanced Manufacturing Technology, 26, 293-299.

Delffmann, W. (2000). Supply chain management in the global context. Working Paper No. 102, Department of General Management, Business Planning and Logistics, The University of Cologne.

Ertugrul I., & Karakasoglu N. (2008). Comparison of fuzzy AHP and fuzzy TOPSIS methods for facility location selection. International Journal of Advanced Manufacturing Technology, 39 (7-8), 783–795.

Fontela, E., & Gabus, A. (1976). The DEMATEL observer, DEMATEL 1976 Report. Switzerland Geneva: Battelle Geneva Research Center.

Frazelle E., (2002). Supply Chain Strategy: The Logistics of Supply Chain Management, The McGraw-Hill Companies Inc.

Gabus, A., & Fontela, E. (1972). World problems, an invitation to further thought within the framework of DEMATEL. Switzerland, Geneva: Battelle Geneva Research Centre.

Gabus, A., & Fontela, E. (1973). Perceptions of the world problematique: Communication procedure, communicating with those bearing collective responsibility (DEMATEL report no. 1). Switzerland Geneva: Battelle Geneva Research Centre.

George, J. F., Dennis, A. R., & Nunamaker, J. F. (1992). An experimental investigation of facilitation in an EMS decision room. Group Decision and Negotiation, 1, 57-70.

Hackman, J. R., & Kaplan, R. E. (1974). Interventions into group process: An approach to improving the effectiveness of groups. Decision Sciences, 5, 459-480.

Hori, S., & Shimizu, Y. (1999). Designing methods of human interface for supervisory control systems. Control Engineering Practice, 7(11), 1413–1419.

Kahraman C., Ruan D., & Dogan I. (2003). Fuzzy group decision-making for facility location selection. Information Sciences, 157, 135-153.

Kamaike, M. (2001). Design elements in the passenger car development: The classification and the influence analysis in case of recreational vehicle. Japanese Society for the Science of Design, 48(1), 29–38.

Kanji, G. K. & Wong, A. (1999). Business Excellence model for supply chain management. Total Quality Management, 10(8), 1147- 1168.Kaplan, R. & Norton, D. (1993). Putting the balanced scorecard to work. Harvard business review,71(5), 134-142.

Kaplan, S. & Norton, D. (1996). The Balance Scorecard. Translating Strategy into Action, Harvard Business School Press, Cambridge, MA.

Kaplan, S., & Norton, D. (2000). Having Trouble with your Strategy? Then Map It. Harvard Business Review, 78 (5), 167-176.

Kaplan, R. & Norton, D. (2004). Strategy Maps: Converting Intangible Assets to Tangible Outcomes, Harvard Business School Press.

Karathanos, D., & Karathanos, P. (2005). Applying the Balanced Scorecard to Education. Journal of Education for Business, 80 (4), 222-230.

Kuo M. S., Liang G. S., & Huang W. C. (2006). Extensions of the multicriteria analysis with pairwise comparison under a fuzzy environment. International Journal of Approximate Reasoning 43, 268–285.

Metters, R. (1997). Quantifying the bullwhip effect in supply chains. Journal of Operations Management, 15, 89-100.

Nair, M. (2004). Essentials of Balanced Scorecard. John Wiley & Sons.Schechter, D. & Sander, G. (2002). Delivering The Goods: The Art of Managing Your Supply Chain, John Wiley & Sons, Inc., Hoboken, New Jersey.

Smith, M. (2005). The Balance scorecard. Financial Management, 27-28.

Smock, D. (2003). Supply chain management: What is it? Purchasing, 132(13), 45-49.

Stadtler H., & Kilger C. (2005). Supply Chain management and Advanced Planning: Concepts, Models, Software and Case studies. Springer, Berlin, Germany.Tsai, W.-H., & Chou, W.-C. (2009). Selecting management systems for sustainable development in SMEs: A novel hybrid model based on DEMATEL, ANP, and ZOGP. Expert Systems with Applications, 36(2), 1444-1458.

Tzeng, G.-H., Chiang, C.-H., & Li, C.-W. (2007). Evaluating intertwined effects in e-learning programs: A novel hybrid MCDM model based on factor analysis and DEMATEL. Expert Systems with Applications, 32, 1028–1044.

Waters, D. (2007). Global logistics: new directions in supply chain management. Kogan Page publishing, London, United Kingdom.Wu, W.-W., & Lee, Y.-T. (2007). Developing global managers’ competencies using the fuzzy DEMATEL method. Expert Systems with Applications, 32, 499–507.

Wu, W.-W. (2008). Choosing knowledge management strategies by using a combined ANP and DEMATEL approach. Expert Systems with Applications, 35, 828–835.

Yamazaki, M., Ishibe, K., Yamashita, S., Miyamoto, I., Kurihara, M., & Shindo, H. (1997). An analysis of obstructive factors to welfare service using DEMATEL method. Reports of the Faculty of Engineering, Yamanashi University, 48(1), 25–30.

Yong D. (2006). Plant location selection based on fuzzy TOPSIS. International Journal of Advanced Manufacturing Technology, 28, 839–844.

Yuzawa, A. (2002). A state and subjects of TMO conception for city core vitalization countermeasure: A case study of Maebashi TMO Conception. Bulletin of Maebashi Institute of Technology, 5(1), 61– 67.Zandin, K. B., & Maynard, H. B. (2001). Maynard's Industrial Engineering Handbook, McGraw-Hill