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Combining DEA and ARIMA Models for Partner Selection in the Supply Chain of Vietnam’s Construction Industry

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  • Han-Khanh Nguyen

    (Faculty of Economics, Thu Dau Mot University, Number 6, Tran Van On Street, Phu Hoa Ward, Thu Dau Mot 590000, Vietnam)

Abstract

The competition between enterprises in the construction market is fierce. If enterprises are unable to afford financial and technological capabilities, they could go bankrupt. Therefore, the implementation of alliances between businesses can help increase their competitiveness. In this study, the authors simultaneously used data envelopment analysis (DEA), the Grey model (GM (1,1)), and autoregressive integrated moving average (ARIMA) to choose a suitable strategic partner to boost the strength of each business and cut the cost of transportation and personnel in an attempt to help managers come up with suitable solutions, offer sustainability, and develop creative management. The results show that the chosen solution improves the business efficiency of construction businesses and offers cost savings on materials, production, and transportation. Management agencies can use the results of this study to propose suitable orientations, strengthen decision-making, and ensure strategic planning to develop the construction sector in Vietnam.

Suggested Citation

  • Han-Khanh Nguyen, 2020. "Combining DEA and ARIMA Models for Partner Selection in the Supply Chain of Vietnam’s Construction Industry," Mathematics, MDPI, vol. 8(6), pages 1-20, May.
  • Handle: RePEc:gam:jmathe:v:8:y:2020:i:6:p:866-:d:363500
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    References listed on IDEAS

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    Cited by:

    1. Peter Adekunle & Clinton Aigbavboa & Opeoluwa Akinradewo & Ayodeji Oke & Douglas Aghimien, 2022. "Construction Information Management: Benefits to the Construction Industry," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    2. Nguyen-Nhu-Y Ho & Phuong Mai Nguyen & Thi-Minh-Ngoc Luu & Thi-Thuy-Anh Tran, 2022. "Selecting Partners in Strategic Alliances: An Application of the SBM DEA Model in the Vietnamese Logistics Industry," Logistics, MDPI, vol. 6(3), pages 1-15, September.
    3. Hassan Younis & Malek Alsharairi & Hammad Younes & Balan Sundarakani, 2023. "The impact of COVID-19 on supply chains: systematic review and future research directions," Operational Research, Springer, vol. 23(3), pages 1-31, September.
    4. Chia-Nan Wang & Phi-Hung Nguyen & Thi-Ly Nguyen & Thi-Giang Nguyen & Duc-Thinh Nguyen & Thi-Hoai Tran & Hong-Cham Le & Huong-Thuy Phung, 2022. "A Two-Stage DEA Approach to Measure Operational Efficiency in Vietnam’s Port Industry," Mathematics, MDPI, vol. 10(9), pages 1-21, April.

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