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Development of Network-Ranking Model to Create the Best Production Line Value Chain: A Case Study in Textile Industry

Author

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  • ABBAS SHEIKH ABOUMASOUDI

    (Iran University of Science and Technology, Iran)

  • SAEED MIRZAMOHAMMADI AHMAD MAKUI

    (Iran University of Science and Technology, Iran)

  • AHMAD MAKUI

    (Iran University of Science and Technology, Iran)

  • JOLANTA TAMOŠAITIENĖ

    (Vilnius Gediminas Technical University, Lithuania)

Abstract

The main reason for creating value chain is fulfilling needs and organizational resources with the least cost and highest quality. Application of most of the current techniques has merely intended to choose the best scenario. But industrial units need to build an ideal scenario as a value chain which focuses on intangible interstitial and hidden factors: good (good nature), bad (bad nature), fixed (obligatory nature) and free (not identifying their nature) and creates value. Therefore, the model presented in this article answers this issue. First of all we present a model based on the network approach of data envelopment analysis, then we assess and rank the stages based on the scenarios for the stages forming the value chain and finally, the ideal decision unit is presented. For this reason, the general efficiency is designed with two natures; 1.input-centered (concentration on the costs) and 2.output-centered (concentration on the incomes).

Suggested Citation

  • Abbas Sheikh Aboumasoudi & Saeed Mirzamohammadi Ahmad Makui & Ahmad Makui & Jolanta Tamošaitienė, 2016. "Development of Network-Ranking Model to Create the Best Production Line Value Chain: A Case Study in Textile Industry," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(1), pages 215-234.
    • Handle: RePEc:cys:ecocyb:v:50:y:2016:i:1:p:215-234
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    References listed on IDEAS

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    Cited by:

    1. Chiu, Singa Wang & Liang, Gang-Ming & Chiu, Yuan-Shyi Peter & Chiu, Tiffany, 2019. "Production planning incorporating issues of reliability and backlogging with service level constraint," Operations Research Perspectives, Elsevier, vol. 6(C).

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    More about this item

    Keywords

    Best Value Chain; Data Envelopment Analysis (DEA); Network-Ranking Models; Ideal Decision Making Unit.;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

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