Decision making model for outsourcing by analysis of hierarchies of T. Saaty under fuzzy environment

Abstract

The article describes disadvantages of existing one-criterion methodologies: only the monetary effect of outsourced process is considered, the analysis of all possible positive and negative consequences of outsourcing is not taken into account. It outlines the main difficulties of multi-criteria approaches for decision making about outsourcing, related to the fact that the improvement of one important criterion of the enterprise’s activity can lead to the deterioration of another criterion. It outlines the fact that there is no unified algorithm for making decisions about production outsourcing. The existing multicriteria decision-making methodology was improved, the Saati method was proposed for ranking the criteria taking into account their importance, as well as a pairwise comparison of the parameters. It explains necessity of applying the proposed decision-making method for outsourcing at an industrial enterprise. It is shown that, along with the economic effect, the mentioned parameters are important for making decision about outsourcing. A detailed analysis of these parameters is carried out on example of production enterprise.