Evaluation on the Procurement Logistics of Automobile Factories Based on the Fuzzy-AHP-TOPSIS

Fuzzy-AHP-TOPSIS를 활용한 자동차 공장의 조달물류 평가에 관한 연구

  • Kim, Yeong-Geun (Incheon National University, Graduate school of Logistics) ;
  • Oh, Jae-Gyeun (Incheon National University, Graduate school of Logistics) ;
  • Park, Sung-hoon (Incheon National University, Graduate school of Logistics) ;
  • Yeo, Gi-Tae (Incheon National University, Graduate school of Logistics)
  • 김영근 (인천대학교 동북아물류대학원) ;
  • 오재균 (인천대학교 동북아물류대학원) ;
  • 박성훈 (인천대학교 동북아물류대학원) ;
  • 여기태 (인천대학교 동북아물류대학원)
  • Received : 2018.05.02
  • Accepted : 2018.07.20
  • Published : 2018.07.28


Automobile industry is facing a variety of risks, including the rise of international oil price and the increase of car prices. In addition to the government's deregulation, efforts should be made to improve management aiming at higher production efficiency. In this study, we established a model for evaluating the procurement logistics based on the Fuzzy-AHP-TOPSIS by using the factors that are actually used in real companies aimed at the improvement of procurement logistics. A total of three automobile factories of Company G were chosen as the evaluation subject. In the result of the Fuzzy-AHP analysis that was conducted on a sample of three car factories, solving the long-term quality problems, minimizing the stop time due to the shortage of materials, preventing the of equipment accident, and solving the short-term quality problems were proven to be the most important factors. TOPSIS analysis result indicated that Factory B had the best procurement logistics. Our study has significance that it can contribute to the improvement of efficiency in the automobile industry as the evaluation model suggested in this study can be used for regular evaluation related to the procurement logistics in the future.


  1. S. C. Kim. (2009). An Empirical Analysis on the Export Competitiveness and Intra-industry trade of Korean Automobile Industry. Journal of Industrial Economics and Business, 22(3), 1241-1259.
  2. N. S. Choi. (2017). The Impact of Korea-U.S. FTA Renegotiation on Korean Domestic Industries - Evidence form 7 Major Manufacturing Industries. The Korean Academy for Trade Credit Insurance, 18(4), 231-255.
  3. J. G. Lee. (2016). Volswagen's Diesel Emission Cheating Litigation in the US and its Implication. Business Law Review, 30(3), 249-269.
  4. J. H. Koh. & H. K. Ha. (2015). Determination Factor Analysis of Parts Procurement Competitiveness in Automobile Manufacturing Companies with AHP (Analytic Hierarchy Process). Korean Journal of Logistics, 23(2), 99-111.
  5. H. K. Kwon. (2006). A Comparative Study on the Logistics System Between Korean and Japanese Automobile Industry. The Korean-Japanese Journal of Economics & Management Studies, 33, 139-157.
  6. D. K. Kim. & H. H. Jo. (2002). A Study on the Outbound Logistics Network Rationalization of Domestic Automobile Industry. Journal of Channel and Retailing, 7(1), 1-20.
  7. K. H. Lee, T. W. Chung & S. L. Choi (2006). A Strategy to Enhance Logistics Competitiveness of Export and Import Automobile in Incheon Port. Journal of Distribution and Management Research, 9(2), 59-81.
  8. S. H. Park & B. S. Lee (2007). A study on the Managerial Method and calculation method of Procurement Logistics Cost for Manufacturing Firms in Korea. Korean Journal of Logistics, 15(1), 97-110.
  9. C. K. Chung. (2004). A Correlation Analysis Between Competitive Advantage and Buyers' Inbound Logistics Activities. Korea trade review, 29(1), 85-109.
  10. K. A. Choi & H. C. Lim (2012). Fundamental research on the impact of Curtain Wall construction supply chain management. The Relative Priority of Improving Procurement Process with Supply Chain of Off-Site Manufacturing, 16(3), 197-204.
  11. G. Veselko, I. Jakomin (2006), Just in time as a logistical supply concept, Traffic & Transportation, 18(4), pp.279-283.
  12. Valery Lukinskiy, Natalia Pletneva, Victor Gorshkov & Pyotr Druzhinin (2017), Application of the Logistics "Just in Time" Concept to Improve the Road Safety, Transportation Research Procedia, 20, 418-424.
  13. Schulz & M. Muller (2016), Procurement Strategy - Levers for Increasing Efficiency in Product Development in the Automobile Industry, Supply Management Research, 239-274
  14. M. K. Hur, T. W. Lee & S. S. Kwan (2001). An Empirical Analysis on the Utilization of 3PL from the Perspective of Strategic Alliance. Korea Logistics Review, 11(1), 23-44.
  15. J. Y. Lee, Y. J. Park, C. I. Park & J. W. Lee (2009). The Effects of Critical Success Factors on Customer Satisfaction in 3PL Business. Korea Logistics Review, 17(4), 29-49.
  16. B. R. Chun & M. S. Han. (2016), A Study on the Roles of Factors Promoting Trust in Maintaining and Enhancing Relationships of Third-Party Logistics Company, Global Business Administration Review, 2016(5), 139-165
  17. D. Horenberg (2016), Applications within Logistics 4.0 A research conducted on the visions of 3PL service providers, University of Twente, The Netherlands
  18. B. H. Kim, S. H. Park, J. M. Gong & G. T. Yeo (2017). A Study on the Safety Factor Analysis of Bulk Cargo Handling Using Fuzzy-AHP : Focused on steel cargo. Journal of Digital Convergence), 16(2), 179-188.
  19. W. J. Jang. (2013). Priority Evaluation of Preliminary Cases for IMO Information Management System using Fuzzy TOPSIS and AHP. Journal of Korean Navigation and Port Research, 37(5), 493-498.
  20. S. W. Ryu. (2012). Integration of Fuzzy AHP and Fuzzy TOPSIS and Its Application to Supplier Selection Problem. Journal of the Korean Institute of Plant Engineering, 17(3), 35-44.
  21. X. Zhu, Q. Zhang, J. Yang & L. Zhang (2013), E-Commerce Websites Promotion of Laptops based on AHP and Fuzzy TOPSIS, International Journal of u- and e- Service, Science and Technology, 6(4), 51-68.
  22. T.L. Saaty (1994). Highlights and critical points in the theory and application of the analytic hierarchy Process, Journal of Operation Research, Vol.74, 426-447.
  23. L.A. Zadeh (1965). Fuzzy sets. Information and Control 8, 338-353.
  24. K. Y. Kim & D. H. Kim (2012). Disaster Recovery Priority Decision of Total Information System for Port Logistics: Fuzzy TOPSIS Approach. Journal of Information Technology Services, 11(3), 1-16.