Horizontal collaboration in semiconductor manufacturing industry supply chain: An evaluation of collaboration intensity index

This paper aims to provide a generic quantitative model to comprehensively assess the degree of collaboration with individual horizontal collaboration initiatives with a view to check feasibility for satisfying the customer requirements. The analytic hierarchy process–fuzzy logic model (AHP–FLM) approach is chosen for developing the model, a method that is often used to tackle complex strategic decision making that calls for subjective judgment based on well-established logical reasoning, rather than on simple feeling and intuition. In the process, the complex and unstructured problem for ‘compatibility test’ is broken down into elements, and then a customized hierarchy structure is set up to demonstrate the relationship between different hierarchy levels and among these elements. Each element may have a different level of importance for the horizontal collaboration. A fuzzy rule based collaboration intensity index (CII) is developed to build up the relationships among these evaluation attributes. Synthesizing the generic relative importance and the forecasted degree of collaboration, the proposed approach can determine the success of the collaboration initiative. An illustrative example of a semiconductor industry supply chain (SSC) member that intends to partner with a potential and competing candidate enterprise is developed to demonstrate the applicability of the proposed fuzzy strategic alliance selection framework and to measure the effectiveness of a horizontal collaboration initiative.