Main Factor TOPSIS Analysis in Decision-making on the Efficiency of Third-party Reverse Logistics Enterprise

Transcription

1 Main Factor TOPSIS Analysis in Decision-aking on the Efficiency of Third-party Reverse Logistics Enterprise HANG Fengrong, Annik Magerhol FET.Northeast Noral University, Jilin Changchun 307;. Norwegian University of Science and Technology Norway Trondhei Abstract: The perforance of third-party reverse logistics enterprise is not only concerned about the arket copetition ability of both sides of supply and deand enterprise under the condition of econoic globalization and shortage of resources, but also concerned about the level of environental social responsibility anageent. This paper establishes the ain Factor TOPSIS Analysis odel in decision-aking on the perforance of reverse logistics enterprise with an epirical exaple. The evaluation results indicated that not only this ethod has the obvious superiority and the feasibility, and has the widespread application value and the instruction function in reality. Key words: Reverse Logistics; Perforance Evaluation; Main Factor Analysis; TOPSIS (Technique for Order Preference by Siilarity to Ideal Solution Introduction The evaluation and decision-aking on the perforance of the enterprise can be boiled down to the proble of target evaluation. Decision-aking on the perforance evaluation of reverse logistics enterprise is ulti-factor and ulti-target syste engineering, it always needs to consider different standards and to easure ulti-ite targets. While the coplexity of ulti-target decision-aking causes the perforance evaluation of reverse logistics enterprise to be coplex and difficult. For instance, when selecting third-party reverse logistics enterprise, the deand-side enterprise not only requires the third-party enterprise having uch higher technological strength, circulation reutilizing ability and correct transportation ability, in addition, it requires the enterprise aking contribution to social responsibility (CSR, while reverse logistics enterprise ust control the cost outlay for existing. Therefore, the different criteria of the both sides becoes the conflicting and interacting purposing goal of reverse logistics enterprise anageent. [] TOPSIS ethod applied by this research is a ulti-target evaluating ethod of the ost advantage and the ost disadvantage coprehensively considering analysis schee, which can solve discrete ulti-target decision-aking in different criteria. In the ethod of TOPSIS, weighing is difficult to confir and to avoid the subjectivity. In order to search the best target weighing distribution for each evaluated object, this research introduces principal coponent analysis, which not only avoids the subjectivity of weighing confiration, but also realizes the diensionality reduction of data. In this foundation, we establish TOPSIS decision-aking ode on perforance evaluation of reverse logistics enterprise, and verify the applicability of TOPSIS analysis through case evaluation and analysis. [] Multi-target Evaluation and Decision-aking Target syste of the Perforance of Reverse Logistics Enterprise Fro the view of the third-party reverse logistics enterprise s characteristics, the progress of its decision-aking concerns about the probles of ecological environent, society, econoy, engineering technology and etc. Synthesize those factors; perforance evaluation of reverse logistics enterprise can coprehensively ake evaluation and decision-aking fro the aspects of technological strength, transportation ability, circulated utilizing ability, service level, social benefit and the cost. The established target syste is shown as figure ; the calculation and quantification of each target attribute 49

2 value can refer to reference [3]. Sheet Figure Evaluation Syste 3 Main Factor TOPSIS Evaluation in Decision-aking on the Perforance of Reverse Logistics Enterprise 3. Main factor analysis confirs ain factors It is supposed that there are relevant observed variables: 493 X,...,, X X n, expressing standard variable of X with i, thus atheatical odel is: F a + a a F a + a a ( F a + a a In the equation, F i and F j ( i j is utual independence. F i is called ain coponent factor, which is the coprehensive target of original variable. The iportant work of the ain coponent analysis is to tie factor loading atrix and to select the first ain coponent factor F according to variable, letting F i s contribution reaching the greatest in coon variance of each variable, then to cancel the effect of this factor, to select uncorrelated factor F with F fro reanent relevant ites, letting F s contribution reaching the greatest in coon variance of each variable. By parity of reasoning, till each variable coon factor variance being separated copletely. [4] 3. TOPSIS Decision-aking Method The basic principle of TOPSIS does ordering with the help of optiization solution and pessiu solution of ulti-target decision-aking to ake sure the optiization and pessiu of each schee. Optiization solution eans a supposed ideal schee; all its taergeted value achieves the optiization solution of each schee; while pessiu solution is at opposite pole. Coparing the actual solution of each schee with optiization solution and pessiu solution, if soe solution of schee is nearest to the optiization solution and far away fro pessiu solution, then this solution is the ideal solution of the schee, the schee of correspondence is the optiization solution [5]. The step using ain factor TOPSIS analysis in decision-aking is: ( Supposing the decision-aking atrix of ulti-target decision-aking constructed by the ain ( y / y n

3 coponent factor is: A y construct norative decision-aking atrix: ( ; y is No. j targeted value in No. I schee. In the equation, A can, in the equation, ( The constructed weighing norative decision-aking atrix: X ( x,, x w z(,,...,; n j,,..., in the equation, w is weighing in No. j target. (3 Confiring the optiization solution and pessiu solution of the target, separately constructing vector X + of the optiization solution and vector X - of the pessiu solution: X + ax x + +,,..., n, j,,..., x, x,..., x (4 Distance calculation: X in x,,..., n, j,,..., x, x,..., x The distance of each solution to the optiization value: + + D ( x x j ( i The distance of each solution to j the pessiu value: D ( x x j (,,..., n (3 (5 Calculating relative approach j degree of targeted value and optiization value of each evaluation unit. According to approach degree, ake ordering to the schee; select the greater value in approach degree: (4 + C D /( D + D ( i,,..., n 4 Exaple Analysis } { + } { } { } i i i i,,..., n Taking the evaluation in reference [3] as case, the evaluation and decision-aking of the perforance of reverse logistics enterprise utilizing the ain factor TOPSIS analysis are as follows: ( Noralization of targeted value. A3 and F~F4 are belonging to lower optiization target of the cost, theirs value is the saller the better. In order to achieve the requireent of the sae trend, converting lower optiization target to higher optiization target with difference ethod; then analyzing the ain coponent to the noralized tertiary targeted value A~E3, while tertiary targeted value F~F4 is the noralized discrete value, entering TOPSIS evaluation atrix as the easure of weighing directly, and the gained ain factor and characteristic value. ( Establishing secondary evaluation target atrix. Taking the ain factor value in sheet as decision-aking value, taking characteristic value as weighing, secondary targeted value adopting TOPSIS analysis is shown as table. Fro the secondary targeted ordering result in table, enterprise is strong in technological strength, circulation ability and service level; enterprise has stronger transportation ability and social responsibility benefit; each target of enterprise 5 is uch weak, but in aspect of cost control, it is in the first position of the enterprise, the second is enterprise 4; enterprise 3 and enterprise 6 are in iddle position, but in relatively, enterprise 3 is superior to enterprise 6. (3 Calculating and analyzing ebodying the approach degree of enterprise-self business as iportance. According to the data of secondary target in table, calculating the weighing of target is (0.3004, , , 0.397, and degree of each enterprise can be gained by TOPSIS analysis. It is indicated that reverse logistics enterprise ust control the cost and pay attention on technological strength in order to win the arket copetition. Therefore, fro the view of third-party reverse logistics enterprise s business, approach degree is based toward the cost and technological strength. (4 Calculating and analyzing ebodying the approach degree of Deand side as iportance. Considering different deand enterprise will be based toward soe abilities when selecting the third-party reverse logistics enterprise, this study separately sets transportation ability (B, circulation ( 494

4 utilizing ability (C, service level (D (E and social responsibility benefit weighing 3, other weighing, getting different approach degrees through calculation. The calculating result is shown as table. Sheet 3 indicates that, enterprise 5 is in weak position in different evaluation of approach degree; approach degree and the ordering are ostly in line with the result in the evaluation of reference [3], it can be indicated that it is based toward transportation ability (B; fro the view of the calculation of approach degree 3, if it is based toward circulation utilizing ability (C, the place of enterprise 4 will rise one position with respect to enterprise 3; if it is based toward service level (D, the place of enterprise will fall behind at large aplitude in approach degree 4, which will fall to No. 4; approach degree 5 indicates that, if it is based toward social responsibility benefit (E, enterprise will higher than enterprise, which will rise to No.. Table Secondary Targeted Value A Orderin B Orderin C Orderin D Orderin E Orderin F Orderin Enterprise Enterprise Enterprise Enterprise Enterprise Enterprise Table Calculating Result degree degree degree3 degree4(d3 degree5(e3 Enterprise Enterprise Enterprise Enterprise Enterprise Enterprise Conclusion This paper establishes the odel of perforance evaluation and decision-aking on reverse logistics enterprise using the ain factor TOPSIS analysis and ade case analysis with the help of evaluation case in reference []. Fro the view of evaluating result, this ethod has a certain theoretical significance and reference value in actual application. In addition, we can see that using ain factor TOPSIS analysis to ake decision-aking analysis has any advantages: ( Utilizing ain coponent analysis to extract ain factor as evaluating target and weighing confired by calculating can avoid the subjectivity during the confiration of weighing, and the data of saple is suitable for TOPSIS analysis. This cobined evaluation ethod absorbs advantages of ain coponent analysis and TOPSIS analysis in coprehensive evaluation, copleenting each other; ( During the process of decision-aking, separately changing weighing fro the view of the both parties of reverse logistics can show the gae result of various benefit, richening the inforation of decision-aking; (3 Calculation of ain factor TOPSIS analysis is not coplex, and straightforward and its strong operable,can both evaluate single level target syste and coplex ultiple level target syste, which has the function of broad application and direction in decision-aking analysis. References [] Hua Dangling, hang hiyong, Lv Shiai. TOPSIS Analysis in Multi-target Decision-aking Method 495

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