| Title | Value-Based Management Of A Furniture Factory |
|---|---|
| ID_Doc | 7070 |
| Authors | Terzieva, V; Todorova, K; Pavlov, Y; Andreev, R; Kademova-Katzarova, P |
| Title | Value-Based Management Of A Furniture Factory |
| Year | 2019 |
| Published | |
| Abstract | The problem of decision making and management in a small furniture factory embraces many different aspects including economic ones. In the contemporary view of system analysis, this task is considered as management of a complex system. The study aims to assess the potential of value-based decision making for modelling the management processes in such complex systems. For that purpose, a utility function that analytically represents the preferences of an expert in this field is built. Hence, the object of research is the development of a value-based model that allows defining an optimal area for flexible choice of a wide range of furniture production to achieve the best market realization and profit. The subject of the research is an examination of the customer's preferences and determination of a range of products according to market demand. The applied method is based on the utility theory and value-based decision making in management activities of planning, organizing and controlling. An aggregated utility function that includes essential system parameters is constructed. This function reflects human thinking and expectations concerning the economic efficiency of the furniture factory. The described methodology allows effective management of the enterprise according to the concepts of the manager. The built-in mathematical model is used to evaluate the manufacturing process. The presented value-based model practically supports the optimization of production. Thus, the introduced procedure subsequently leads to efficient management of a small factory. |
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