scholarly journals IDENTIFYING AND PRIORITIZING COST REDUCTION SOLUTIONS IN THE SUPPLY CHAIN BY INTEGRATING VALUE ENGINEERING AND GRAY MULTI-CRITERIA DECISION-MAKING

2020 ◽  
Vol 26 (6) ◽  
pp. 1311-1338 ◽  
Author(s):  
Jalil Heidary Dahooie ◽  
Seyyed Jalaladdin Hosseini Dehshiri ◽  
Audrius Banaitis ◽  
Arūnė Binkytė-Vėlienė
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Value Engineering ◽  
Multi Criteria Decision Making ◽  
Team Members ◽  
A Value ◽  
Cost Criterion ◽  
Engineering Team ◽  
Supply Chain Cost Management ◽  
The Cost

Value engineering is an appropriate policy for creating and improving value, which reduces unnecessary costs and maintains core functionality. Despite the mentioned benefits, this approach has so far received little attention in the area of supply chain management. Although this approach is highly structured, limitations such as overemphasizing the cost criterion and failure to meet other criteria, utilizing team members’ votes to rank solutions, ignoring inherent uncertainty and ultimately disagreement between value engineering team members have reduced the effectiveness of this approach. The present study aims to provide a coherent framework for utilizing a value engineering approach to supply chain cost management and overcome the aforementioned limitations by utilizing gray multi-criteria decision-making. In this regard, in the first phase, the initial list of improvement solutions is determined, the criteria extracted from the literature are localized using value engineering team members’ opinion. These criteria are weighted using the gray stepwise weight assessment ratio analysis (SWARA-Gray) method. Then, the score of each solution is calculated by the value engineering team based on the list of criteria as a gray number. The scores are aggregated using the gray evaluation based on distance from average solution (EDAS-Gray) method, and the solutions are prioritized. Finally, the application of the proposed framework is investigated in a real case study in a power plant in Iran. The results of the research show that the final rankings of the solutions rarely changed for different methods; so the model used in this study has acceptable stability.

scholarly journals Pareto Optimal Decisions in Multi-Criteria Decision Making Explained with Construction Cost Cases

Symmetry ◽  
2020 ◽  
Vol 13 (1) ◽  
pp. 46
Author(s):  
Hubert Anysz ◽  
Aleksander Nicał ◽  
Željko Stević ◽  
Michał Grzegorzewski ◽  
Karol Sikora
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Pareto Optimal ◽  
Multi Criteria Decision Making ◽  
Ideal Solution ◽  
Optimal Decisions ◽  
Cost Criterion ◽  
The Cost ◽  
Financial Result ◽  
The Ideal

In multi-criteria decision-making (MCDM) problems the decision-maker is often forced to accept a not ideal solution. If the ideal choice exists, it would be certainly chosen. The acceptance of a non- ideal solution leads to some inadequate properties in the chosen solution. MCDM methods help the decision-maker to structure his needs considering different units, in which the properties of the solutions are expressed. Secondly, with MCDM tools the assessment of the available solutions can be calculated with consideration of the decision-maker’s needs. The incorporation of the cost criterion into the decision maker’s preferences calculation, and the solution assessment calculation, deprives the decision-maker of the ability to calculate the financial result of the decision he must make. A new multi-criteria decision making with cost criterion analysed at the final stage (MCDM-CCAF) method is developed based on principle of Pareto optimal decisions. It is proposed to exclude the cost criterion from the MCDM analysis and consider it at the final phase of the decision-making process. It is illustrated by example solutions with consideration of cost criterion and without it. It is proposed to apply the invented post-processing method to all MCDM analyses where the cost criterion of analysed variants is considered.

REKAYASA NILAI HARGA PEMBUATAN TERHADAP EFEKTIFITAS PENGGUNAAN BAHAN PADA PEMBANGUNAN PERUMAHAN TIRTO PENATARAN ASRI TIPE 70/135 KECAMATAN NGLEGOK KABUPATEN BLITAR

2017 ◽  
Vol 7 (1) ◽  
pp. 43-52
Author(s):  
Mochamad Tamim Ma’ruf
Keyword(s):  
Engineering Application ◽  
Cost Savings ◽  
Comparison Method ◽  
Value Engineering ◽  
Design Work ◽  
Housing Projects ◽  
Initial Design ◽  
A Value ◽  
The Cost ◽  
Design Proposal

One-solving methods and techniques necessary to avoid inefficiencies and not economic costs as well as reduce the cost of housing construction is the method of Value Engineering. Value engineering is a method and cost control techniques to analyze a function to its value at the lowest cost alternative (most economical) without reducing the quality desired.At the writing of this study used a comparison method by comparing the initial design to the design proposal of the author. In the housing projects Upgrading Tirto Penataran Asri type 70, the application of Value Engineering conducted on the job a couple walls and roofs pair by replacing some work items with a more economical alternative but does not change the original function and high aesthetic level and still qualify safe. For that performed the step of determining a work item, the alternative stage, the analysis stage, and the stage of recommendations to get a Value Engineering application and cost savings against the wall a couple of work items and partner roof.The proposed design as compared to the initial design. Work items discussed was the work of a couple wall having analyzed obtained savings of Rp. 2,747,643.56 and the work of the roof pair obtained savings of Rp. 2,363,446.80. Thus the total overall savings gained is Rp 5,111,090.36 or savings of 0048%.

scholarly journals The Analysis of Small Investors’ Demands on a Thermal Insulation System for a Family House: A Case Study

2021 ◽  
Vol 13 (5) ◽  
pp. 2491
Author(s):  
Alena Tažiková ◽  
Zuzana Struková ◽  
Mária Kozlovská
Keyword(s):  
Decision Making ◽  
Thermal Insulation ◽  
Construction Cost ◽  
Environmental Cost ◽  
Multi Criteria Decision Making ◽  
Insulation System ◽  
Insulation Systems ◽  
Small Investors ◽  
The Cost ◽  
Family House

This study deals with small investors’ demands on thermal insulation systems when choosing the most suitable solution for a family house. By 2050, seventy percent of current buildings, including residential buildings, are still expected to be in operation. To reach carbon neutrality, it is necessary to reduce operational energy consumption and thus reduce the related cost of building operations and the cost of the life cycle of buildings. One solution is to adapt envelopes of buildings by proper insulation solutions. To choose an optimal thermal insulation system that will reduce energy consumption of building, it is necessary to consider the environmental cost of insulation materials in addition to the construction cost of the materials. The environmental cost of a material depends on the carbon footprint from the initial origin of the material. This study presents the results of a multi-criteria decision-making analysis, where five different contractors set the evaluation criteria for selection of the optimal thermal insulation system. In their decision-making, they involved the requirements of small investors. The most common requirements were selected: the construction cost, the construction time (represented by the total man-hours), the thermal conductivity coefficient, the diffusion resistance factor, and the reaction to fire. The confidences of the criteria were then determined with the help of the pairwise comparison method. This was followed by multi-criteria decision-making using the method of index coefficients, also known as the method of basic variant. The multi-criteria decision-making included thermal insulation systems based on polystyrene, mineral wool, thermal insulation plaster, and aerogels’ nanotechnology. As a result, it was concluded that, currently, in Slovakia, small investors emphasize the cost of material and the coefficient of thermal conductivity and they do not care as much about the carbon footprint of the material manufacturing, the importance of which is mentioned in this study.

scholarly journals Multi-Criteria Decision Making for Sustainability and Value Assessment in Early PSS Design

2019 ◽  
Vol 11 (7) ◽  
pp. 1952 ◽  
Author(s):  
Marco Bertoni
Keyword(s):  
Decision Making ◽  
Environmental Benefits ◽  
Business Strategies ◽  
Multi Criteria Decision Making ◽  
Value Assessment ◽  
A Value ◽  
Key Innovation ◽  
Trade Offs ◽  
Product Service ◽  
Multiple Case

Sustainability is increasingly recognized as a key innovation capability in the organization. However, it is not always evident for manufacturers how sustainability targets shall be “mixed and matched” with more traditional objectives—such as quality, time, cost, and performances—when designing and developing solutions. The emergence of “servitization” and product-service systems (PSS) further emphasizes the need for making thoughtful trade-offs between technical aspects, business strategies, and environmental benefits of a design. The objective of this paper is to investigate how multi-criteria decision making (MCDM) models shall be applied to down-select PSS concepts from a value perspective, by considering sustainability as one of the attributes of a design contributing to the overall value of a solution. Emerging from the findings of a multiple case study in the aerospace and construction sector, the paper presents a five-step iterative process to support decision making for sustainable PSS design, which was further applied to design an electrical load carrier. The findings show that the proposed approach creates a “hub” where argumentations related to “value” and “sustainability” of PSS solution concepts can be systematically captured in a way that supports the discussion on the appropriate quantification strategy.

scholarly journals Study on Benefit Coordination of Supply Chain Network Based on Green Development

2019 ◽  
Vol 16 (8) ◽  
pp. 1458
Author(s):  
Gao ◽  
Wang
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Cost Sharing ◽  
Main Body ◽  
Supply Chain Network ◽  
Logistics Network ◽  
Coordination Model ◽  
Green Development ◽  
Green Index ◽  
The Cost

Based on Stackelberg's master–slave game theory and green index decision-making conditions, this paper studies the benefit coordination of a supply chain network composed of a business flow network and logistics network, discusses the decision-making behavior of the main body of the supply chain network under the performance of green contracts or speculative behavior, respectively, and further constructs the supply chain network collaborative benefit coordination model under the guidance of a manufacturer considering a green development index. The supply chain network interest coordination model analyzes the relationship between the dominant manufacturer behavior and the supply chain network green index and network profit. The results show that fulfilling green contracts helps improve the profitability and sustainability of supply chain networks. A counter-intuitive but interesting result is that the dominant manufacturers increase the cost-sharing ratio or penalties of the logistics network, which will reduce the profit level and green index of the logistics network, and increase the cost-sharing ratio or punishment of the suppliers. Strength will increase the profitability and green index of the logistics network. Finally, we validate the relevant conclusions of the model through numerical simulation analysis.

scholarly journals Simulation and Modeling Efforts to Support Decision Making in Healthcare Supply Chain Management

2014 ◽  
Vol 2014 ◽  
pp. 1-16 ◽  
Author(s):  
Eman AbuKhousa ◽  
Jameela Al-Jaroodi ◽  
Sanja Lazarova-Molnar ◽  
Nader Mohamed
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Simulation And Modeling ◽  
Healthcare Organizations ◽  
Chain Management ◽  
Decision Making Processes ◽  
Environment Simulation ◽  
The Cost ◽  
Support Decision Making

Recently, most healthcare organizations focus their attention on reducing the cost of their supply chain management (SCM) by improving the decision making pertaining processes’ efficiencies. The availability of products through healthcare SCM is often a matter of life or death to the patient; therefore, trial and error approaches are not an option in this environment. Simulation and modeling (SM) has been presented as an alternative approach for supply chain managers in healthcare organizations to test solutions and to support decision making processes associated with various SCM problems. This paper presents and analyzes past SM efforts to support decision making in healthcare SCM and identifies the key challenges associated with healthcare SCM modeling. We also present and discuss emerging technologies to meet these challenges.

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