IDEAS home Printed from https://ideas.repec.org/a/aiy/jnjaer/v20y2021i1p148-168.html
   My bibliography  Save this article

Model for Assessing the Effectiveness of the Formation of Sustainable Supply Chains of Raw Materials by Timber Industry Enterprises

Author

Listed:
  • R.S. Rogulin

Abstract

The paper presents a model for evaluating the effectiveness of enterprise decisions on the formation of the vector of procurement of raw materials at the timber exchange based on the volume of costs incurred. Enterprises usually set themselves the goal of incurring costs no higher than the target costs, so it becomes very important to take this factor into account during the process of evaluating efficiency. The evaluator does not always know the level of target costs, in response to which such levels are generated in the work, and for each of them the effectiveness is evaluated and an average value is taken. To calculate the efficiency indicator, a non-linear economic and mathematical model was built, which differs in the calculation of the boundary costs (efficiency boundaries) that determine the categories of efficiency. The article applies the principle of the golden ratio to determine the boundaries and categories of effectiveness. The aim of the work is to draw up a mathematical model and a heuristic algorithm that allows for evaluating the effectiveness of a decision made at the enterprise for the formation of supply chains for raw materials, which is distinguished by the ability to take into account the generated different indicators of target costs and calculate the boundaries and categories of efficiency. The hypothesis of the study is the possibility of assessing the effectiveness of the decision made at the enterprise in the formation of sustainable supply chains of raw materials, provided that the evaluator is not aware of the level of targeted costs. The nonlinearity of the mathematical model predetermined the construction of a heuristic algorithm for finding the solution. With the estimate obtained, the problem of borders appears due to economic reasons. To solve this problem, the methods of fuzzy sets and fuzzy logic were used. The algorithm and model were tested on the data of one of the enterprises of the Primorsky Territory. In the course of pilot application, it was shown that the boundaries of efficiency change and, as a result, have different categories of efficiency at different values of the target costs due to the nature of the efficiency assessment function. The results of the model and algorithm test showed the effectiveness of the efficiency evaluation scheme

Suggested Citation

  • R.S. Rogulin, 2021. "Model for Assessing the Effectiveness of the Formation of Sustainable Supply Chains of Raw Materials by Timber Industry Enterprises," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 20(1), pages 148-168.
    • Handle: RePEc:aiy:jnjaer:v:20:y:2021:i:1:p:148-168
    DOI: http://dx.doi.org/10.15826/vestnik.2021.20.1.007
    as

    Download full text from publisher

    File URL: https://journalaer.ru//fileadmin/user_upload/site_15934/2020/07_Rogulin.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.15826/vestnik.2021.20.1.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. José M. González-Varona & David Poza & Fernando Acebes & Félix Villafáñez & Javier Pajares & Adolfo López-Paredes, 2020. "New Business Models for Sustainable Spare Parts Logistics: A Case Study," Sustainability, MDPI, vol. 12(8), pages 1-16, April.
    2. V. G. Venkatesh & Abraham Zhang & Eric Deakins & Sunil Luthra & S. Mangla, 2019. "A fuzzy AHP-TOPSIS approach to supply partner selection in continuous aid humanitarian supply chains," Annals of Operations Research, Springer, vol. 283(1), pages 1517-1550, December.
    3. Qazi, Abroon & Dickson, Alex & Quigley, John & Gaudenzi, Barbara, 2018. "Supply chain risk network management: A Bayesian belief network and expected utility based approach for managing supply chain risks," International Journal of Production Economics, Elsevier, vol. 196(C), pages 24-42.
    4. YoungSu Yun & Anudari Chuluunsukh & Mitsuo Gen, 2020. "Sustainable Closed-Loop Supply Chain Design Problem: A Hybrid Genetic Algorithm Approach," Mathematics, MDPI, vol. 8(1), pages 1-19, January.
    5. Shashank Thanki & Jitesh Thakkar, 2018. "A quantitative framework for lean and green assessment of supply chain performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 67(2), pages 366-400, February.
    6. Fana Rasolofo-Distler & Frédéric Distler, 2018. "Using the Balanced Scorecard to Manage Service Supply Chain Uncertainty: Case Studies in French Real Estate Services," Post-Print hal-02537693, HAL.
    7. Mohammad Askariazad & Mohammed Wanous, 2009. "A proposed value model for prioritising supply chain performance measures," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 1(2/3), pages 115-128.
    8. Gunasekaran, A. & Patel, C. & McGaughey, Ronald E., 2004. "A framework for supply chain performance measurement," International Journal of Production Economics, Elsevier, vol. 87(3), pages 333-347, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ruiz-Benítez, Rocío & López, Cristina & Real, Juan C., 2018. "The lean and resilient management of the supply chain and its impact on performance," International Journal of Production Economics, Elsevier, vol. 203(C), pages 190-202.
    2. E. Ahila Devi & S. Radhika & A. Chandrasekar, 2023. "An energy-efficient MANET relay node selection and routing using a fuzzy-based analytic hierarchy process," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 83(2), pages 209-226, June.
    3. Shuang Yao & Donghua Yu & Yan Song & Hao Yao & Yuzhen Hu & Benhai Guo, 2018. "Dry Bulk Carrier Investment Selection through a Dual Group Decision Fusing Mechanism in the Green Supply Chain," Sustainability, MDPI, vol. 10(12), pages 1-19, November.
    4. Urciuoli, Luca, 2018. "The risk of standards proliferation – An analysis of differences between private and public transport standards," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 591-602.
    5. Sara Al-Haidous & Tareq Al-Ansari, 2019. "Sustainable Liquefied Natural Gas Supply Chain Management: A Review of Quantitative Models," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    6. Sina Duensing & Martin C. Schleper & Christian Busse, 2023. "Wildlife trafficking as a societal supply chain risk: Removing the parasite without damaging the host?," Journal of Supply Chain Management, Institute for Supply Management, vol. 59(2), pages 3-32, April.
    7. Siti Aisyah Ya?kob & Mohd Uzairi Ahmad Hajazi & Nor Afiza Abu Bakar & Sharizal Hashim, 2019. "The Influence of Information Sharing Linkages on Business Performance: Evidence from Micro and Small Enterprises in Sarawak," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(1), pages 18-26, January.
    8. Kusi-Sarpong, Simonov & Bai, Chunguang & Sarkis, Joseph & Wang, Xuping, 2015. "Green supply chain practices evaluation in the mining industry using a joint rough sets and fuzzy TOPSIS methodology," Resources Policy, Elsevier, vol. 46(P1), pages 86-100.
    9. Schneider, Christian O. & Bremen, Philipp & Schönsleben, Paul & Alard, Robert, 2013. "Transaction cost economics in global sourcing: Assessing regional differences and implications for performance," International Journal of Production Economics, Elsevier, vol. 141(1), pages 243-254.
    10. Sharma, Mahak & Antony, Rose & Sehrawat, Rajat & Cruz, Angel Contreras & Daim, Tugrul U., 2022. "Exploring post-adoption behaviors of e-service users: Evidence from the hospitality sector /online travel services," Technology in Society, Elsevier, vol. 68(C).
    11. Zhao, Nanyang & Hong, Jiangtao & Lau, Kwok Hung, 2023. "Impact of supply chain digitalization on supply chain resilience and performance: A multi-mediation model," International Journal of Production Economics, Elsevier, vol. 259(C).
    12. Saswati Tripathi & Bijoy Talukder, 2023. "Supply Chain Performance and Profitability in Indian Automobile Industry: Evidence of Segmental Difference," Global Business Review, International Management Institute, vol. 24(2), pages 371-392, April.
    13. Ogulin, R. & Selen, W. & Ashayeri, J., 2010. "Determinants of Informal Coordination in Networked Supply Chains," Discussion Paper 2010-133, Tilburg University, Center for Economic Research.
    14. Zhao, Na, 2019. "Managing interactive collaborative mega project supply chains under infectious risks," International Journal of Production Economics, Elsevier, vol. 218(C), pages 275-286.
    15. Becker, Jörg & Vilkov, Lev & Weiß, Burkhard & Winkelmann, Axel, 2010. "A model based approach for calculating the process driven business value of RFID investments," International Journal of Production Economics, Elsevier, vol. 127(2), pages 358-371, October.
    16. Hamzeh Soltanali & A.H.S Garmabaki & Adithya Thaduri & Aditya Parida & Uday Kumar & Abbas Rohani, 2019. "Sustainable production process: An application of reliability, availability, and maintainability methodologies in automotive manufacturing," Journal of Risk and Reliability, , vol. 233(4), pages 682-697, August.
    17. Kroes, James R. & Manikas, Andrew S. & Gattiker, Thomas F., 2018. "Operational leanness and retail firm performance since 1980," International Journal of Production Economics, Elsevier, vol. 197(C), pages 262-274.
    18. Guo, Haidong & Wang, Shengyu & Zhang, Yu, 2021. "Supply interruption supply chain network model with uncertain demand: an application of chance-constrained programming with fuzzy parameters," LSE Research Online Documents on Economics 114936, London School of Economics and Political Science, LSE Library.
    19. Gutierrez, Debora M. & Scavarda, Luiz F. & Fiorencio, Luiza & Martins, Roberto A., 2015. "Evolution of the performance measurement system in the Logistics Department of a broadcasting company: An action research," International Journal of Production Economics, Elsevier, vol. 160(C), pages 1-12.
    20. Ghadah Lafi Alharbi & Monira Essa Aloud, 2024. "The effects of knowledge management processes on service sector performance: evidence from Saudi Arabia," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-19, December.

    More about this item

    Keywords

    efficiency assessment; genetic algorithm; efficiency function; efficiency boundaries; theory and methods of optimization; economic analysis; timber industry;
    All these keywords.

    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aiy:jnjaer:v:20:y:2021:i:1:p:148-168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalia Starodubets (email available below). General contact details of provider: https://edirc.repec.org/data/seurfru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.