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A systematic procedure to evaluate an automobile manufacturer-distributor partnership

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  • Chen, Shuo-Pei
  • Wu, Wann-Yih

Abstract

Automobile manufacturer-distributor partnerships are fundamental to the success of automobile companies. The complexity of the overall partnership model often causes difficulties in partnership study. This paper presents a systematic procedure to evaluate an automobile manufacturer-distributor partnership consisting of a large number of system variables. Firstly, Interpretive Structure Modeling (ISM) is used to sort system variables into groups of various characteristics. This sorting process provides an effective means to develop a three-stage hierarchic/network model of the partnership, including Stage I: partnership selection, Stage II: partnership establishment, and Stage III: partnership maintenance. Secondly, Analytic Hierarchy Process (AHP)/Analytic Network Process (ANP) are applied to partnership evaluation based on as many as 20 system variables. Relative importance weight of all variables is quantitatively determined. The most investment-worthy variables found are management strength and power. Finally, this paper makes a comparison between the optimum distributors identified by the present procedure and in practical cases. The usefulness and efficiency of the proposed procedure are ascertained with highly consistent results in the comparison.

Suggested Citation

  • Chen, Shuo-Pei & Wu, Wann-Yih, 2010. "A systematic procedure to evaluate an automobile manufacturer-distributor partnership," European Journal of Operational Research, Elsevier, vol. 205(3), pages 687-698, September.
    • Handle: RePEc:eee:ejores:v:205:y:2010:i:3:p:687-698
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