A Combined Ahp-Anp Approach to Evaluate Supply Chain of Electronic Business

A combined AHP-ANP approach to evaluate supply chain of electronic business

Submitted to:

ITBI Conference’15, Goa

Submitted By:

Rohit Singh

Abhishek Tuli

Ankit Karir

Umakanta Sahoo

ABSTRACT

Purpose: The purpose of this study is to solve the issues in supply chain network with the integration of Operation Management models and E-Business and to provide the real time solution to Wrangler that witnessed the decline in sales and market share, which was once highly successful and highly competitive in the denim jeans market. Wrangler identified that product was not conveniently available to the customers.

Methodology: This problem includes both tangible and intangible criteria therefore analytic hierarchy process (AHP) is accepted as the methodology and to identify the interdependency between these criteria analytic network process (ANP) is used.

Findings: According to our observations by using different OM models, it was found out using AHP that Future group emerged as the most important criteria followed by Westside and Reliance retail for managing the distribution network of Wrangler products. Dependency among the different criteria was identified using ANP.

Originality/Value: In this study we implemented various OM models to a real world supply chain problem. The results that we obtained were considered acceptable and feasible by the decision maker.

Practical Implications: This robust technique for the effective use of E-business with OM models as a backbone in supply chain network can be used in any sector for effective use of resources and achieving customer satisfaction.

Keywords: AHP, ANP, Supply chain management, E-Business.

Introduction to e-business

Laudon and Traver have termed e-Business as “the digital enablement of transactions and processes within a firm, indulging information systems under the control of the firm, which doesn’t include the company’s revenue” (2001, p.7). For example, a firm’s inventory management system and warehousing do not affect its revenue directly, such as its sales strategies and models. It falls under the domain of e-Business. However e-commerce does affect revenue.

By these points of view, it seems that a company’s e-Business system can also support e-Commerce for external value exchange. Although e-Business has been termed as an electronic information management system for a company’s internal needs, some people still think the realm of e-Business transactions should cover e- Commerce. E-Business is used to manage a firm’s internal data and then information. However, in order to be effective e-Business also needs to be supported by huge amounts of external data and information. In this context, a manufacture’s inventory management needs to know from its suppliers the timeline for keeping the materials on the production line. On the other hand, the production time-line relates to the products’ shipment date. Then those solutions applied to the customers and customers’ customers and complete the business.