DCM: D Number Extended Cognitive Map. Application on Location Selection in SCM

Abstract

Offshore outsourcing is a widely used management technique for performing business functions with the aim of reducing labor and transportation costs. The selection of locations has a significant influence on the supply chain’s resilience and qualities, but the influence of multiple external factors on the supply chain’s performance in local places in a complex and uncertain environment has not been examined. In this study, we investigated the influence of external factors in a highly uncertain and complicated situation in which relationships between external factors and supply chain resilience are complicated. Furthermore, we proposed a novel model to select locations from a comprehensive perspective. Specifically, the fuzzy cognitive map (FCM) is utilized to simulate the dynamic influence process where the adjacency is aggregated by D numbers. The weights of different resilience capabilities are considered from the perspective of maximizing benefits by using the decision-making trial and evaluation laboratory-analytic network processes (DEMATEL-ANP) model. By comparing the distance to the ideal solutions, we selected the best alternative location. Our results differ from the general case, which reveals that the weights of different capabilities influence selections.