Evaluation of account receivable collection alternatives with fuzzy MCDM methodology

Chih Young Hung*, Yiming Li, Yi Hui Chiang

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Scopus citations

Abstract

In this paper, we present a fuzzy multiple criteria decision-making (FMCDM) approach to evaluation of account receivable (A/R) collection instruments. By considering the prepayment, the letter of credit (L/C), the documentary collection (including D/A and D/P), and the open account (O/A), the FM-CDM approach is for the first time applied to investigate the A/R collection for the microelectronics and optoelectronics industries in Taiwan. According to our results, difference of the ranking preference between the two industries is observed. The ranking in the microelectronics industry is the prepayment, the L/C, the O/A and the documentary collection (D/A,D/P). The preference in the optoelectronics industry is the prepayment, the O/A, the L/C, and the documentary collection (D/A,D/P), respectively. International collection in modern unpredictable global market could be difficult unless Arms have taken appropriate collection strategies. We believe that our study provides an alternative for making critical decisions during selecting A/R collection instruments.

Original languageEnglish
Title of host publication2006 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2006
Pages1009-1013
Number of pages5
DOIs
StatePublished - 21 Jun 2006
Event2006 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2006 - Shanghai, China
Duration: 21 Jun 200623 Jun 2006

Publication series

Name2006 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2006

Conference

Conference2006 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2006
Country/TerritoryChina
CityShanghai
Period21/06/0623/06/06

Keywords

  • Account receivable
  • FAHP
  • Fuzzy MCDM
  • Global market
  • International collection
  • Microelectronics
  • Optoelectronics
  • Quantitative method

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