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Business Project

Recommendations (9)


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At a recent meeting, members discussed ways in
which to enable logistics centers to comply with the demands of local
enterprises. Logistics centers play a pivotal role in
ensuring that the importing and exporting activities of international firms
are implemented efficiently, ensuring that commercial trade can satisfy
consumer demand and offer quality services. While enterprises
outsource their logistic needs for various reasons, of priority concern is
reducing overhead costs and increasing efficiency.
However, conventional management practices of logistics centers have
difficulty in complying with the demands of local enterprises, negatively
impacting the quality of services delivered. owing to the inability to
effectively respond to corporate changes such as the demand for
increasingly smaller products and materials, a shorter product life cycle,
and limited time in ordering and purchasing goods. Given the important
role that logistics centers play in an enterprises success, lowering
overhead costs is essential in the following areas: inventory
management, transportation management, circulation and processing,
technological know how and information infrastructure. In terms of
service, a rapid reaction and ability to cooperate with enterprises is vital
for logistics centers.
According to statistics from 1996 to 1998,
only 15% of all local enterprises in Hsinchu City chose logistics
centers to fulfill importing and exporting requirements owing their
lack of confidence in their effectiveness. Moreover, according to
a Ministry of Economic Affairs report in 1999 , although market
demand for logistical support exceeds 55%, logistics firms fulfill
only around 35% of that demand. The lack
of confidence among local enterprises in the quality of services
offered by logistics centers will not only curtail the growth of this
sector, but also impede sound management practices in
importing and exporting. The inability to enhance the quality of
service stems from the inability to identify the consumer demand,
understand customer's intentions and offer quality services that
satisfy consumer demand. the enterprise corporation great
impact if without choosing good the logistics center to grow up
on the performances of enterprises.
Therefore, we recommend developing a flexible and
accurate fuzzy theory-based AHP method that applies fuzzy theory to the
business ratings of logistics centers, providing corporate managers with
an effective criterion to assess the management practices of logistics
centers and the quality of services delivered. In doing so, enterprises can
identify the specialties of logistics centers and construct an effective
criterion to for administrators to evaluate the effectiveness of logistics
centers based on a clear criteria. To do so, a
questionnaire can be designed based on interviews with managers of
logistics centers. Data obtained from those interviews regarding service
quality can then be analyzed using the AHP method and fuzzy theory.
Next, service quality of logistics centers can be determined using an
AHP-based criteria. Additionally, quality of service can be assessed
based on the corporate expectations, enabling us to select the best
logistics center from available options. Moreover, customer service and
other special services can be incorporated into efforts to achieve
customer satisfaction. In sum, outsourcing corporate needs to logistics
centers requires satisfying specific demands that are flexible in
responding to sudden changes in a business environment.
As anticipated, the proposed fuzzy theory-based AHP method can
enable local enterprises to evaluate the effectiveness of logistics centers based
on a criterion index, subsequently increasing corporate competitiveness and
efficiency by 25% while reducing personnel costs by 10%. Additionally, the
proposed method provides an effective means of assessing the quality of
services provided by logistics centers, Logistics centers must respond to
specialized consumer demands. For instance, inventory stock management
must comply with Just In Time policies, in which orders are combined into order
Consolidation , effective customer reaction, i.e., - Efficient Consumer Response
(ECR ), a fast reaction, i.e., Quick Response (QR ) , continuously mending
Goods for- Continuous Replenishment Process (CRP ), and managing stocks,
in which the vendor acts on behalf of others. Various demands include Managed
Inventory (VMI ). Importantly, the proposed AHP-based method and
fuzzy theory can provide an effective means of assessing the quality of services
provided by logistics centers, thus offering the enterprise managers corporation
chief executive officer (CEO ), to propose with the ability to enhance the quality
of servicing and improving the strategy-tactics model for the logistics centers
strategic management procedures, ultimately enhancing the global
competitiveness of Taiwanese enterprises by providing them with clear
management guidelines for evaluating their suppliers.
Our senior management recently expressed
concern over how to hospitals operating under Taiwans National
Health Insurance scheme can increase revenues from non-subsidized
patients. Since its establishment in 1995, Taiwans
National Health Insurance scheme has strived to provide medical
coverage for all of the islands residents under the auspices of the
National Health Insurance Bureau. By 2005, the National Health
Insurance Bureau was approaching bankruptcy, making it extremely
difficult to effectively manage the financial resources of hospitals. Given
continuous advances in medical science and medical instrumentation,
the medical sector in Taiwan has become intensely competitive,
necessitating that hospitals provide quality medical services under
limited medical resources. Given the islands elevated living standards,
an increasing health consciousness among the general public has led
to a strong societal demand for hospitals to offer high quality medical
treatment and services. Generally, rather than concerned with the price
of medical treatment, patients are more concerned with the level of
Despite the high quality medical care provided, hospitals
often have difficulty in understanding customers needs. More
specifically, conventional statistical methods such as AHP and TOPSIS
cannot analyze how patients select a hospital for treatment, making it
extremely difficult to devise effective business management strategies.
(NOTE : Add 1-2 sentences that describe characteristics of the
problem or statistics that reflect its severity) For
example, of the nearly 200 patients expressing dissatisfaction with
Wanfang Hospital in 2004, 30% resented medical care, 25% felt that
medical personnel had poor professional attitudes, 25% were
dissatisfied with hardware equipment and the remaining 20%
expressed dissatisfaction over a miscellaneous range of items.
Given the lost revenues of nearly 25% from
governmental subsidized care, Wangfang Hospital finds it nearly
impossible to increase revenues generated from non-subsidized
patients without clearly analyzing patient satisfaction/dissatisfaction
Therefore, we recommend developing a patient selection model
using AHP and TOPSIS, which analyzes incoming hospital patients with
respect to public image of the hospital, the current market demand for specific
services, efforts to gain the confidence of patients in the quality of medical
services. According to the decision making rule, patients normally assess the
unique features of a hospital when they visit a physician. More than previously,
patients will assess the quality of a hospital before selecting which one to
receive medical treatment. Identifying the factors why patients select a certain
hospital for treatment is thus of priority concern. To do so,
AHP and TOPSIS can be adopted to analyze incoming hospital patients with
respect to public image of the hospital, the current market demand for specific
services, efforts to gain the confidence of patients in the quality of medical
services in patients mind and factors why patients select a certain hospital for
treatment. A frame questionnaire can then be designed by incorporating the
basic requirements of patients, including intangible ones such as respect. To
our knowledge, patients hospitalized for over three days in a medical center in
Taipei are analyzed for the first time in this study with respect to the above
factors. Use of PZB in the twenty-two item questionnaire can enhance its
effectiveness, including factors such as tangibles, reliability, responsiveness,
assurance and empathy.
Next, the following criterion can be adopted to analyze the
questionnaire results: physicians are qualified and reliable; medical
staff has received sufficient training; physicians are willing to offer
valuable clinical information; physicians express concern for their
patients; medical staff display a professional attitude; and the hospital
honors patient confidentiality. Additionally, SPSS software package can
be used to analyze those results. Moreover, four assumptions can be
raised: As anticipated, the proposed patient selection
model can be established using AHP and TOPSIS, which conventional
statistical models are incapable of doing. While influencing which
hospital that a patient selects, quality of hospital services does not
necessarily improve customer satisfaction. Importantly,
the proposed model can provide an effective strategy for hospitals
attempting to generate revenues independently of the national health
insurance scheme. (NOTE : Add 2 more sentences that describe
more thoroughly how the proposed method contributes to a particular
field or sector)
Further details can be found at