Selection of Production Mix in the Agricultural Machinery Industry Considering Sustainability in Decision Making

Anderson Hoose, Víctor Yepes and Moacir Kripka
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Anderson Hoose: Civil and Environmental Engineering Graduate Program (PPGEng), University of Passo Fundo, Passo Fundo 99052-900, Brazil
Víctor Yepes: Institute of Concrete Science and Technology (ICITECH), Universitat Politècnica de València, 46022 Valencia, Spain
Moacir Kripka: Civil and Environmental Engineering Graduate Program (PPGEng), University of Passo Fundo, Passo Fundo 99052-900, Brazil

Sustainability, 2021, vol. 13, issue 16, 1-14

Abstract: Competition among companies is growing globally, with the need to increase productivity and efficiency in the product sector. However, there is also a growing concern about global warming and the depletion of natural resources, as well as their effects on human health. In this context, all human activities that involve intense usage of resources must take into account sustainability as one of the decision criteria. This work presents the application of decision-making methods to define the best product mix in the agricultural machinery industry. With this objective, the current schedule of the production line was identified, along with the production flow, by performing an inventory analysis and an environmental impact study (endpoint). A total of seven alternatives for the production mix of grain trailers were defined, considering different materials and production processes. The selection of the best schedule according to the different criteria was performed through the analytic hierarchy process (AHP) and data envelopment analysis (DEA) to evaluate the managerial implications for decision making. The results obtained through AHP identified a single alternative as being the best, which facilitates the decision making. The DEA method identified two alternatives as the most efficient, and in this case the manager can choose between a product mix that generates lesser environmental impact or greater profitability. Although applied to agricultural industry, the presented methodology can be easily adapted to other activities related to the built environment, such as construction industry.

Keywords: analytic hierarchy process (AHP); data envelopment analysis (DEA); sustainability; product mix; agricultural industry; decision making (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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