Owing to the trend of mass customization, variation of product structure cannot be fixed or unchangeable. Therefore, substitutive materials policy is a popular used method to meet customers’ demand expectation. However, the management objectives of material substitution are various and sometimes there are conflicts between different departments. Therefore it needs a systematic analysis to find out the key factors of adopting substitutive materials under management goal. In this research, an assessment model based on Analytic Network Process (ANP) was constructed to connect the relationship of management objectives and cause of substitutive materials. Firstly, an expert questionnaire was used to filter out useful performance matrices, used as the sub-criteria of the ANP model. Then, a real case was analyzed using the constructed ANP-based assessment model for material substitution management. Finally, this model was also applied to different companies to verify the effectiveness of generalization through collecting questionnaires from them. The both results indicate that product quality, product reliability and product design are the three significant critical factors that influence the decision of adopting substitutive materials. From the previous three factors, it’s obvious that the product quality is the most influential factor when making material substitution decision which the same as practical experiences. That is, this proposed ANP-based assessment model is robust and effective for material substitution management.
Balakrishnan, A. and J. Genunes, (2000), “Requirements planning with substitutions: exploiting BOM flexibility in production planning,” Manufacturing & Service Operations Management, Vol. 2, No. 2, pp. 166-185.
Chen, C.Y, Zhao, Z., and Ball, M.O. (2002), “A Model for Batch Advanced Available-to-Promise,” Production and Operations Management, Vol. 11, No. 4, pp.424-440.
Huang, J.L. (2006), “A Verification Research on Using ANP to Choose Suppliers—Using Dairy Products Suppliers for a Chain Supermarket as an Example,” Master thesis, National Chin-Yi University of Technology, Taiwan.
Hsu, S.Y. (2000), “Enterprise Resource Planning Systems Selection Using Analytic Network Process,” Master thesis, Tamkang University, Taiwan.
Krajewski, K.P., Karcz, P., Wozny, E. and Mork, A., (2007), “Type section of the Bravaisberget Formation (Middle Triassic) at Bravaisberget, Western Nathorst Land, Spitsbergen, Svalbard,” Polish Polar Research, Vol. 28, No. 2, pp.79-122.
Lee, J.W. and S.H. Kim, (2000), “Using analytic network process and goal programming for interdependent information system project selection,” Computers and Operations Research, Vol. 27, No. 4, pp.367-382.
Li, S., B. Ragu-Nathan, T.S. Ragu-Nathan and S.S. Rao. (2006), “The Impact of Supply Chain Management Practices on Competitive Advantage and Organizational Performance,” The International Journal of Management Science, Vol. 34, No. 2, pp.107-124.
Lin, S.H. (2000), “The Construction of Product Substitution Strategy under Real-time ATP Information Model,” Master thesis, National Central University, Taiwan.
Lin, Y.H., C.C. Chiu and C.H. Tsai, (2008), “The Study of Applying ANP Model to Assess Dispatching Rules for Wafer Fabrication,” Expert Systems with Applications, Vol. 35, No. 3, pp. 2148-2163.
Lin, Y.H., K.M. Tsai, W.J. Shiang, T.C. Kuo and C.H. Tsai, (2009), “Research on Using ANP to Establish a Performance Assessment Model for Business Intelligence Systems,” Expert Systems with Applications, Vol. 36, No. 2, March, pp.4135-4146.
Liu, Y.C. (2007), “An Application of ANP Reuse Program Assessment of Spaces Resources for Cultural Heritage,” Master thesis, Chaoyang University of Technology, Taiwan.
Meade, L.M. and J. Sarkis, (1999), “Analyzing organizational project alternatives for agile manufacturing processes: An analytical network approach,” International Journal of Production Research, Vol. 37, No. 2, pp.241-261.
Messner, F., (2002), “Material substitution and path dependence: empirical evidence on the substitution of copper for aluminum,” Ecological Economics, Vol. 42, No. 1, pp.259-271.
Saaty, T.L., (1996), “The analytic network process,” RWS Publications, Expert Choice, Inc., Pittsburgh.
Saaty, T.L., (1980), “The analytic hierarchy process,” McGraw-Hill, New York.
Saaty, T.L., (2003), “Decision making in complex environments,” Super Decisions.
Skinner, W. (1974). The focused factory. Harvard business review, May-June, pp.113-121.
Veinott, A.J.R., (1964), “Optimal Policy for a Multi-Product Dynamic Non-Stationary Inventory Problem,” Management Science, Vol. 12, No. 3, pp.206-222.
Ward, P.T., K.K. Boyer, G.K. Leong, and L.J. Krajewski., (1998), “Competitive Priorities in Operations Management,” Decision Sciences, Vol. 29, No. 4, pp.1035-1046.
Copyright: © 2014 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
