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How to select suitable manufacturing information system outsourcing projects by using TOPSIS method

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  • Chun-Chin Wei
  • Yung-Lung Cheng
  • Kuo-Liang Lee

Abstract

Modern business management depends on information technology (IT) deeply. However, most companies, especially manufacturing, are not good at IT. But IT is very important and complex to the manufacturing industry. Numerous manufacturing now outsource their information system (IS) projects to Information Service Providers (ISP) instead of developing in-house. This work classifies the critical objectives for selecting manufacturing information system outsourcing projects into benefit-related objectives and cost-related objectives and then formulates a goal programming (GP) model. Interactions between manufacturing information system projects and availability of scarce resources are also considered into constraints of the model. However, because of the incommensurability and conflicting nature of these objectives, the GP model becomes complex. The method called ‘technique for order preference by similarity to ideal solution’ (TOPSIS) and the fuzzy set theory are employed to simplify the complex GP solving process and reflect the preferences of managers. A case study of a TV assembly company in Taiwan illustrates the feasibility of the proposed model.

Suggested Citation

  • Chun-Chin Wei & Yung-Lung Cheng & Kuo-Liang Lee, 2019. "How to select suitable manufacturing information system outsourcing projects by using TOPSIS method," International Journal of Production Research, Taylor & Francis Journals, vol. 57(13), pages 4333-4350, July.
    • Handle: RePEc:taf:tprsxx:v:57:y:2019:i:13:p:4333-4350
    DOI: 10.1080/00207543.2019.1572930
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    Cited by:

    1. Movin Sequeira & Anders Adlemo & Per Hilletofth, 2023. "A hybrid fuzzy-AHP-TOPSIS model for evaluation of manufacturing relocation decisions," Operations Management Research, Springer, vol. 16(1), pages 164-191, March.
    2. Zhengmin Liu & Xiaolan Zhao & Lin Li & Xinya Wang & Di Wang & Peide Liu, 2020. "Selecting a Public Service Outsourcer Based on the Improved ELECTRE II Method with Unknown Weight Information under a Double Hierarchy Hesitant Linguistic Environment," Sustainability, MDPI, vol. 12(6), pages 1-34, March.
    3. Renan Favarão da Silva & Marjorie Maria Bellinello & Gilberto Francisco Martha de Souza & Sara Antomarioni & Maurizio Bevilacqua & Filippo Emanuele Ciarapica, 2021. "Deciding a Multicriteria Decision-Making (MCDM) Method to Prioritize Maintenance Work Orders of Hydroelectric Power Plants," Energies, MDPI, vol. 14(24), pages 1-22, December.

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