Models for Evaluating Value Chains

Abstract

So far, the value-added processes or systems have been treated as a “black-box”. We examine the resources available to the processes or systems and monitor the “conversions” of these resources (inputs) into the desired outputs. However, each process or system can include many subprocesses. For example, if the process is to make a car, then important subprocesses include assembling and painting. If we evaluate the efficiency of a supply chain system, then we need to measure the performance of each individual supply chain components, including suppliers, manufacturers, retailers, and customers.