Supply Chain Performance Evaluation: Trends and Challenges

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American J. of Engineering and Applied Sciences 2 (1): 202-211, 2009 ISSN 1941-7020 © 2009 Science Publications

Supply Chain Performance Evaluation: Trends and Challenges
Ezutah Udoncy Olugu and 2Kuan Yew Wong Department of Manufacturing and Industrial Engineering, Faculty of Mechanical Engineering, University Technology Malaysia, 81310 UTM Skudai, Malaysia Abstract: Problem statement: In today’s manufacturing world, globalization policies and rejuvenation have created a more intensive competition amongst manufacturers. On the other hand, manufacturers have turned to the option of adopting innovative technologies, process re-engineering and strategies such as efficient supply chain management to achieve a sustainable competitive advantage. Effective supply chain performance measurement has been identified as a key issue towards efficient supply chain management. To explore the extent of research in supply chain performance measurement and establish the gap in knowledge in supply chain performance measurement using fuzzy logic operation. Approach: Literatures in the area of supply chain performance measurement had been extensively reviewed. Both traditional and fuzzy logic approaches to supply chain performance measurement were scrutinized. Further scrutiny was carried out to establish potential research areas in the application of fuzzy logic operations in supply chain performance measurement. Results: The supply chain performance measurement using fuzzy logic operation was identified as a new direction in measuring the uncertainty and ambiguity surrounding supply chain performance measurement. Direction for further studies in the application of fuzzy logic operation in supply chain management and its performance measurement were also identified. Conclusion: Result of this study implied that there is still a gap in knowledge in the area of supply chain performance measurement. This new direction of studies involved extending the existing supply chains to incorporate product recovery after the useful life. Key words: Supply chain, supply chain performance measurement, supply chain management, fuzzy logic INTRODUCTION Supply chain management concept originated from the recognition that the process of transforming raw materials into final products and delivering those products to customers is becoming increasingly complex. On that note, it has become increasingly apparent that analysis as well as the subsequent improvement of the individual supply chain echelons does not lead to improvement of the supply chain as a whole. Therefore, the concept of the supply chain emerged to describe all production stages from raw material procurement to final product delivery to the end user[1,2]. Competition in the manufacturing environment has shifted from individual firms to their respective supply chains, therefore only a firm with agile and versatile supply chain can sustain the effective competitive edge[2-7]. With product demands being more customer-driven, shrinking product lifecycles and alternative products springing up by the hour, there is thus a need for an effective management of the supply chain rather than just the internal factors[2]. For an effective and credible management of the customer, a joint effort of the suppliers, manufacturers and distributors is required[5]. As supply chain focuses on the processes management within and beyond organizational boundaries, thus a measure of its performance is necessary for its effective operation and control. This study looks at the various studies on supply chain performance measurement and points out their achievements as well as their limitations. Sequel to the limitations highlighted in the review, new directions for future studies are proposed. Supply chain: Supply Chain comprises a worldwide network of suppliers, factories, warehouses, distribution centers and retailers through which raw materials are acquired, transformed and delivered to the end user[5]. Supply chain is a...
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