Analysing the impact of the product life cycle on the importance of outsourcing decision-making criteria: A manufacturing case study

M. Cheshmberah^I; A. Makui^II; S.M. Seyedhoseini^III; S. Yousefi^IV

^IDepartment of Industrial Engineering, Iran University of Science & Technology, Iran, mcheshmberah@iust.ac.ir
^IIDepartment of Industrial Engineering, Iran University of Science & Technology, Iran, amakui@iust.ac.ir
^IIIDepartment of Industrial Engineering, Iran University of Science & Technology, Iran, seyedhoseini@yahoo.com
^IVDepartment of Young Researchers Club, Islamic Azad University, Iran, s.yousefie@iauctb.ac.ir

ABSTRACT

This study has been carried out to discover the impact of the product life cycle (PLC) on the importance of outsourcing decision-making criteria in a manufacturing firm. The four dimensions of outsourcing decision-making were identified, based on a literature review and on the conditions of the firm: (1) core competencies, (2) information leakage risk, (3) technological capability, and (4) cost. A case study and survey research were used, along with two non-parametric tests (Friedman's test and Kendall's W). The results show in particular that the importance of 'technological capability' and 'strategic information leakage risk' does not differ across the various PLC stages. The importance of 'leakage risk of product volume information' and 'total cost' change over different stages of the product life cycle are also addressed. For the latter two criteria, the probabilities of each rating related to each criterion importance have been estimated by ordinal logistic regression, and the weights of these criteria have been calculated at each stage of the product life cycle.

OPSOMMING

Die navorsing ondersoek die invloed van produklewensiklus op die gebruik van buite leweransiers deur 'n vervaardigingsonderneming. 'n Besluitvormingsmetode word ontwerp en getoets deur skepping van 'n boeket van wiskundige gereedskap soos, onder andere, ordinale logistiese regressie en die logistieke funksie. Die metode word ten slotte afgerond met 'n keurige gebruik van die Wasigheidsleer.

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* Corresponding author.
1 The author is a PhD student (Industrial Engineering) in the Department of Industrial Engineering, Iran, University of Science & Technology.