An integrated approach for the merger of small and medium-sized industrial units

Abstract

this study considers the importance of small and medium-sized industrial units for economic growth, social cohesion, and regional and local development. It presents a merger model to use each other's capacities and facilities to achieve higher efficiency levels. First, the involved criteria have been chosen using the SCOR model, considering sustainability, resilience and agility criteria in each part of the supply chain network. Next, PCA was used to reduce the dimensionality and the efficiency of units has been determined by network DEA. A mathematical model was used to determine the best combination for the merger. The model chosen for the finalization of the merger process is inverse network DEA, which tries to determine the final inputs of the merged units for a specific target. In addition to theoretical benefits, the results have practical applications. The results can give supply chain partners a common language for better communication and help them settle on standardized definitions. The model has been implemented using real-world data from other articles on 26 stone industries in Iran. The DEA and mathematical models have been solved through GAMS and the PCA approach through MATLAB.