Abstract
The competitiveness of the global market and availability of multiple outsourcing options have greatly increased the complexity of making ‘good’ outsourcing decisions. Improving the decision-making process when faced with a complex decision situation requires a systematic decision-making framework. We propose such a framework for making strategic manufacturing outsourcing decisions that benefits from prominent decision analysis tools. We envision a multiple factor outsourcing decision model and specifically advocate the use of 1 value-focused thinking to identify the outsourcing objectives 2 a combination of an influence diagram and a decision tree to model the decision situation 3 the cumulative prospect theory as an alternative to traditional utility theory for modelling the risk behaviour of the decision maker 4 the prospect stochastic dominance to establish pair-wise dominance between outsourcing choices. We have developed a procedure for dividing the outsourcing choices into dominated and non-dominated sets, and rank ordering the elements of non-dominated set to identify the best strategy.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Data Analysis Techniques and Strategies
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
