A decision making framework for comparing sales and operational performance of firms in emerging market

Abstract

Sales and operations planning translates the requirements of the customers at the market place (related to new and/or existing products and services) into actionable tactical plans to drive the activities of the value chain of the organization. The present work aims to provide a multi-period and multi-perspective evaluation framework to compare the sales and operational performance (SOP) of firms in an emerging market. SOP is one of the frontline KPIs that describes the efficiency and effectiveness of the sales and operations planning. There is a scantiness in the extant literature about well-defined indicators to measure SOP. The current work fills the gap in the literature by developing a hybrid multi-criteria decision making (MCDM) framework utilizing the Logarithmic Percentage Change-driven Objective Weighting (LOPCOW) and Evaluation based on Distance from Average Solution (EDAS) models for a novel application in assessing SOP. From the data analysis, it is also evident that there is a variations in the year wise ranking of the companies. However, all individual year wise rankings maintain statistically significant correlations with the aggregated ranking. For aggregation purpose, Borda Count Method is used. The companies like ITC Limited, Hindustan Unilever Ltd., Avanti Feeds Ltd., Britannia Industries Ltd., and Symphony Ltd. hold the top five positions on aggregate. The comparison with other MCDM models is made and sensitivity analysis is carried out. The present work is a first of its kind that would encourage the analysts and the policy makers to evaluate the sales and operational performance using a scientific way.

Evaluation based on Relative Utility and Nonlinear Standardization (ERUNS) Method for Comparing Firm Performance in Energy Sector

“…LOPCOW is a recently introduced model for calculating the objective weights of the criteria [53]. LOPCOW is advantageous and preferred by several authors already in various domains of social science, engineering, management and basic science [54][55][56][57][58][59][60][61][62][63] for several reasons like ability to combat the highly skewed distribution of the criteria weights influencing the true ranking positions, to deal with negative and zero values in the initial performance or decision matrix and to work with a large group of criteria and alternatives.…”

A Performance based Ranking of Initial Public Offerings (IPOs) in India

“…-Ability to handle a large criteria set. Due to its benefits, LOPCOW has garnered an increasing use in solving practical problems related to engineering, social science, management and technological issues (for example, Biswas et al, 2022aBiswas et al, , 2022bBiswas et al, , 2022cBiswas et al, , 2022dBadi et al, 2022). In the present problem, we use LOPCOW not only for obtaining the criteria weights but also for ranking of the IPOs.…”

Selection of Appropriate Portfolio Optimization Strategy

“…On the other hand, CRADIS is advantageous as it considers ideal solution value as benchmark and calculates utility values also, provides reliable and stable output and does not susceptible to the rank reversal phenomenon. The retrospective review of the literature reveals a good number of applications of LOPCOW method [34][35][36][37][38][39][40][41][42] and CRADIS model [43][44][45][46][47][48]. The broad contributions of the present work is as follows.…”