Application of a hybrid dynamic MCDM to explore the key factors for the internal control of procurement circulation

Abstract

Decisions related to the internal control measurement of procurement circulation are inherently multiple criteria decisionmaking problems and are strategically important to enterprises. Although efforts have been made to discover systematic methods for enhancing purchasing performance, the criteria have been assumed to be independent, which is not actually the case. Most conventional decision models cannot capture the complex interrelationships the criteria. Here, we propose a workable hybrid dynamic multiple criteria decision-making (HDMCDM) method to solve the problems arising from the complex dynamics in the real world. The relationship between the criteria and the criteria weights for the HDMCDM are developed by combining the decision-making trial and evaluation laboratory (DEMATEL) method with the fundamental concept of the analytic network process (ANP), the DEMATEL-based ANP (DANP). VlseKriterijumska Optimizacija I Kompromisno Resenje is then used to aggregate the performance gaps with the weights obtained from the DANP. The results obtained for a specific company show that the four dimensions of internal control of procurement circulation have a mutual influence relationship, with the dimension of 'receiving and storage' demonstrating the greatest influence and 'recorded liabilities' the least. Empirical analysis helps to improve the scores for achieving the aspiration levels for each factor.

Evaluating the Enhancement of Corporate Social Responsibility Websites Quality Based on a New Hybrid MADM Model

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Evaluating the enhancement and improvement of China’s technology and financial services platform innovation strategy

“…In this paper, the DEMATEL method is adopted into the ANP method to generate the un-weighted super-matrix. Therefore, this research combined the advantages of ANP and DEMATEL to solve the problems of dependence and feedback associated with the interrelations between criteria (Chen 2015; Chen et al 2015; Kim and Kim 2015). …”

Improving China’s Regional Financial Center Modernization Development Using a New Hybrid Madm Model

“…This method is used as the basic concept of the TOPSIS method (Hwang, Yoon 1981) on Euclidean distances to the positive ideal (this research adopts the aspiration level) and the negative ideal (this research adopts the worst level) solutions, and TOPSIS used the class Euclidean distance function (Yu 1973), as based the concept of the positive ideal and negative ideal solutions; then Opricovic and Tzeng (2004) found that the TOPSIS method cannot be used in ranking or selection, and proposed the VIKOR method to replace the TOPSIS method, by comparing the preference distance of all real alternatives in order to stay close to the positive-ideal point; however, this research adopted the basic idea of the traditional thinking of the VIKOR method to replace staying close to the aspiration level (Liu et al 2012;Chen 2015;Hu et al 2015). The gap concept measures the proximity to the positive ideal point in order to modify the aspiration level point.…”