Web-based multi-attribute analysis model for make-or-buy decisions

This paper is concerned with the make-or-buy decision model for manufacturing and procurement problems. We developed a web-based two-step approach as follows: (1) for the first step, we used the multi-attribute analysis method using the AHP (analytic hierarchy process); and (2) for the second step we, used fuzzy set ranking methodologies to integrate the special decision problems that are problems involving multi-objectives, multi-criteria, and multi-attributes. We propose a procedure for integrating the comparative judgments and priorities for make-or-buy decisions and for the optimal resource allocation. First, we determine the rank-ordered priority lists of the projects based on the AHP, and then we compute the aggregate fuzzy set rank order. Finally, we develop a systematic and practical program for a simple and easy calculation of all the algorithms used in this study. It is found that the proposed model can be validated by comparative computations in various make-or-buy example problems for a cellular manufacturing system. (C) 2007 Elsevier Ltd. All rights reserved.