Application Of FAHP In Outsourcing Organization Project Evaluation

The economy globalization and market competition are creating more and more huge multinational manufacturing corporations. Today's numerous mergers and acquisitions have made the cooperation organization to be very complex. Adding to the obvious issue of how to operate an effective strategic sourcing function, is no longer only a situation comprised of organizational merely within firms. The strategic sourcing organizations should be responding to what makes the best business sense to the corporation and the internal customers in terms of purchasing organizational format. How to organize a most effective procurement function is a very important job of the supply chain management. Especially in the manufacturing group enterprises in multi-location, purchase price of raw materials will be the first critical factor of the final sales price of their own products. There is increasing concern brought on by controlling the procurement costing as one important task in whole organization. When there are both centralized and decentralized or semi-centralized procurement organization types, each one of them has both advantages and disadvantages comparing with each other. The management practices of different enterprises also have varies circumstances. How to choice the best suitable type of procurement organization is a significant task of every senior management team in the corporations.The article investigated the difference among the procurement organization types through analyzing the procurement material category and studied the available current research. It's necessary to establish an evaluation model to make decision for the best suitable organization type under various factors. The article also provides an evaluation model based on the analyzing to a typical real case, based on these main factors: quality control, organization management, purchases costing, supplier management, service and operation. Furthermore, it mainly introduces the evaluation method of FAHP and describes in much detail the application of FAHP in outsourcing organization type evaluation by confirming the weight of index established. The sample case also demonstrates how to use the decision making method in organization project selection.