A DEMATEL method to evaluate the causal relations among the criteria in auto spare parts industry

Abstract

A case study of applying decision-making trial and evaluating laboratory (DEMATEL) method in auto spare parts industry in Taiwan is illustrated. This method not only evaluates the importance of dimensions/criteria but also depicts the causal relations among those dimensions/criteria without requiring the assumption that the dimensions/criteria are mutually independent. By observing the causal diagrams, technological capability, service, and organization are the three critical dimensions. Moreover, percent of research and development of technological capability dimension, flexibility and responsiveness of service dimension, and geographical location of organization dimension are the three essential criteria among thirty criteria. For local auto parts makers, technological capability, service, and organization are net causes and have positive impacts on quality, production, price, and delivery in order to continuously improve the overall suppliers’ performance. Moreover, the suppliers need to pay much attention to percent of research and development, flexibility and responsiveness, and geographical location among thirty criteria to improve their performance.