Performance metrics in supply chain management

PurposeThis paper aims to propose a dynamic model for measurement supply chain performance (SCP) based on a dynamic balanced scorecard (DBSC). Balanced scorecard (BSC) can be defined as a popular performance measurement method that can translate the strategy into a set of performance indicators and manage the status of implementing the various strategies. However, BSC is unable to simulate the complicated environment and the dynamic behavior of performance metrics. Therefore, the author combines BSC with system dynamics (SD) to explore a more efficient tool for measurement SCP.Design/methodology/approachA dynamic causal model is proposed based on the causal hypotheses. The developed DBSC enables managers to evaluate and measure the SCP in a much-balanced way. Using DBSC makes it possible that different SCP metrics to be reviewed and distributed into the four above-mentioned perspectives. It also enables supply chain (SC) managers to evaluate different strategies to improve SCP.Findingsinvestigates two strategies to improve SCP as follows: (1) competitive strategy and (2) harvesting big data and using data mining techniques to determine the customer's expectations and then compares the results of these two strategies based on the four perspectives of DBSC and introduce the best strategy. Finally, harvesting big data and data mining is selected as the best strategy.Originality/valueThis study proposes a novel strategic management tool for measurement SCP and simulation of the complicated environment and the dynamic behavior of performance metrics. The proposed DBSC model enables managers to compare different strategies and select the best strategy.

There has been rapid growth in the area of wireless communication by Wireless Mesh Networks (WMNs) where routing metric is the key metric to find the optimized route in WMNs. For obtaining optimal performance, integrating multiple performance metrics into a routing protocol is effective, as single metric will not be able to satisfy the thorough requirement of WMNs. This paper has proposed a new routing metric for Multiple Metric Cost (MMC), WMNs, incorporating three metrics: Residual energy 2) Available Bandwidth and 3) Expected Transmission Count (ETX). MMC results in a better throughput. We evaluated the performance of MMC for proactive, reactive and opportunistic routing protocols using the OMNET++ network simulator. Our evaluation shows that MMC performs well in all three classes of routing protocols.

Objective. Intensity-modulated radiation therapy (IMRT) aims to distribute a prescribed dose of radiation to cancerous tumors while sparing the surrounding healthy tissue. A typical approach to IMRT planning uniformly divides and allocates the same dose prescription (DP) across several successive treatment sessions. A more flexible fractionation scheme would lend the capability to vary DPs and utilize updated CT scans and future predictions to adjust treatment delivery. Therefore, our objective is to develop optimization-based models and methodologies that take advantage of adapting treatment decisions across fractions by utilizing predictions of tumor evolution. Approach. We introduce a nonuniform generalization of the uniform allocation scheme that does not automatically assume equal DPs for all sessions. We develop new deterministic and stochastic multistage optimization-based models for such a generalization. Our models allow us to simultaneously identify optimal DPs and fluence maps for individual sessions. We conduct extensive numerical experiments to compare these models using multiple metrics and dose-volume histograms. Main results. Our numerical results in both deterministic and stochastic settings reveal the restrictive nature of the uniform allocation scheme. The results also demonstrate the value of nonuniform multistage models across multiple performance metrics. The improvements can be maintained even when restricting the underlying fractionation scheme to small degrees of nonuniformity. Significance. Our models and computational results support multistage stochastic programming (SP) methodology to derive ideal allocation schemes and fluence maps simultaneously. With technological and computational advancements, we expect the multistage SP methodologies to continue to serve as innovative optimization tools for radiation therapy planning applications.

Contributors

Implementation and adoption of new technologies are gaining the result of smooth supply chain and logistics operations. Internet of things (IoT) artificial intelligence, including data mining, intensified in all fields of life, particularly in supply chain management and operations. Blockchain technology has the capability to reform the supply chain and logistics operations management. Blockchain provides digital database solutions for all transactions across supply chain and operations management. Radio frequency identification device (RFID) is also helping technology transmit electromagnetic waves to radio-compatible integrated circuits to look after and manage the entire supply chain and logistics operations management. The Fourth Industry Revolution 4.0 refers to the automation, interconnectivity, machine learning, and real-time data that help supply chain and logistics operations management in the 21st century.

The paper presents possible solutions to small farmers in the agricultural sector in a small island setting grappling with challenges of enhancing their local industry and import substitution through a supply-demand chain framework. In 2005, Hawaiian farms produced approximately 363,200 kg of avocados. However, Hawaiian demand for these fruits required an additional 908,000 kg of avocados that were supplied through imports. At the same time, it is worth noting; almost 49% of locally produced avocados did not reach the market. These facts clearly suggest inefficiencies in the local avocado supply chain. Review of the literature on supply chain management suggests a sustainable avocado industry requires an integrated supply and demand chain management system. Hence, a modified conceptual model of supply-chain management called the Supply Demand Integrated Management (SDIM) model is proposed in this paper. Traditional supply chains contain three functional components: supply coordination, physical production and logistic management. In the new model, we propose adding R4D (Research for Development), a public good provided by the government to agricultural industries as an integral part of the supply-demand chain system. It articulates the significance of research and supply chain partnerships between small growers, industry groups, and public agencies. A well-integrated demand/supply chain in the avocado industry allows sharing of vital market information which can contribute to long-term strategic decisions that help local avocado growers increase their competitiveness against foreign imports. It also provides metrics in terms of consumer satisfaction, profitability, competitiveness, self-sufficiency, import substitution and sustainability. The SDIM model as applied to the avocado industry suggests two hypotheses relevant to the current situation. The hypotheses are: (1) There is a lack of coordination between what the farmers are growing and the chefs' (a high-end customer/buyer) preferences; (2) Forming an avocado farmer cooperative will enhance the profitability of local farmers. Survey data was collected from Hawaiian chefs and avocado farmers. Data was analysed using a Duncan multi-range test and a mathematical model, respectively, to test the hypotheses. The test revealed a lack of coordination between what the farmers are growing and buyer preferences. The results from the mathematical model suggested that formation of an avocado marketing cooperative would enhance the profitability of local farmers. Thus, the SDIM framework expands existing body of knowledge about supply chain management and provides useful information to local avocado growers that can help strengthen their supply and demand chain management.

Purpose – In today's competitive global marketplace, performance management has been identified as a key strategic consideration towards achieving an efficient supply chain management. The task of estimating supply chain performance extent is seemed a complex problem entitled with multiple subjective performance measures and metrics; subjected to decision-making environment which involves an inherent vagueness, inconsistency and incompleteness associated with decision-makers (DMs) (expert panel) commitment towards assessment of various subjective (quantitative) evaluation indices. Consequently, it becomes difficult towards making a comparative study on performances of alternative supply chains. It is, therefore, indeed essential to conceptualize and develop an efficient appraisement platform helpful for benchmarking of alternative supply chains based on their performance extent. The paper aims to discuss these issues. Design/methodology/approach – The work explores the concept of grey numbers combined with multi-objective optimization by ratio analysis (MOORA) in perceptive to evaluate best alternative from among available alternative supply chains. Findings – The method has been found fruitful to facilitate such a multi-criteria group decision-making (MCGDM) problem under uncertain environment and provides an appropriate compromise ranking order with respect to available possible alternatives. Originality/value – Supply chain performance appraisement provides necessary means by which an organization can assess whether its supply chain is performing well, whether it has been improved or degraded as compared to the past record. The purpose of this research is to develop and to empirically test a multiple-indices hierarchical appraisement model for benchmarking of supply chain performance and its impact on competitiveness of manufacturing industries.

The strategic management of the supply chain includes the formulation and implementation of a supply chain strategy as well as the assessment of the results. Undoubtedly, the formulation of a supply chain strategy is part of each of the three levels of strategic planning: corporate, business unit, and functional. For successful strategic management of the supply chain, an integrated approach is needed to link the supply chain strategy with the overall strategic management of the company. It is the Balanced Scorecard which seems to be a suitable and effective tool for this purpose. The Balanced Scorecard focuses on formulating a supply chain strategy, linking it to the corporate vision and turning it into particular actions to achieve the strategic objectives. In this article, a methodology for strategic supply chain management is proposed based on the Balanced Scorecard as an instrument for supply chain strategy formulation and implementation. The methodology consists of twelve steps, each of which is commented in more detail. The article aims at filling the gap identified in the literature devoted to strategic aspects of supply chain management.

PurposeThe purpose of this paper is to propose an integrated supply chain performance measurement framework for the case of small and medium scale enterprises (SMEs) using set of qualitative and quantitative insights gained during the case study research.Design/methodology/approachThis paper develops the supply chain performance measurement framework using the facts revealed through case study analysis, secondary data specific to various SME clusters in India and detailed contemporary studies reported on supply chain management in SMEs. It integrates the salient features of balanced scorecard (BSC) and supply chain operation reference (SCOR) model to deliver a comprehensive performance measurement framework for SMEs.FindingsThis paper reports set of performance indicators for the supply chain processes like “source,” “make,” and “deliver” in SMEs. It also relates the measures with various supply chain cycles like “procurement,” “manufacturing,” “replenishment,” and “customer order.” As a result, paper delivers an integrated performance measurement framework for supply chain evaluation and planning in SMEs. It also outlines the detailed guideline for the implementation and use of the framework.Practical implicationsThis paper is expected that the developed framework: will help SME managers to improve the visibility of their supply chain amongst interacting partners; and will help SME firms to explain the basis of their decisions to the other supply chain partners and specifically, origingal equipment manufacturer organizations where less bargaining power exist.Originality/valueThis paper integrates the spirit of two well‐known contributions in the field of performance measurement namely BSC and SCOR. The proposed framework is deduced using the findings of real life case study research and hence establishes an adequate platform for its application. It would help the managers or decision makers in SMEs to gain a systematic insight into their supply chain problems and hence undertake the necessary improvements.

A framework for supply chain performance measurement

Objective: The objective of the paper is to investigate the influence of deployment of Information and Communication Technology (ICT) tools in a supply chain context. Methods/Analysis: The influence of deployment of ICT in Supply Chain Management (SCM) is studied using System Dynamics (SD) methodology using the tool, Causal Loop Diagram (CLD) using software Vensim. Findings: SCM discipline is grappled with dynamic and operational changes and challenges and this unpredictability can be understood better using SD. ICT capabilities fundamentally improve supply chain integration and performance. ICT adoption for SCM improves collaboration, workflow and decision-making which lead to cost savings; improved operational efficiency and inventory visibility. One process in SCM namely inventory control is described using SD. Introduction of a parameter, ICT capability dramatically changes the context and gives rise to new positive feedback loops Novelty/Improvements: The paper uses CLD for ICT influence on SCM process of inventory control. This can be extended for all supply chain management processes in both planning and execution. Case studies with the influence of specific ICT tools like RFID, Cloud, Social Media, Business Analytics, Mobile technology and Multi-agent systems are also possibilities for extending the study. Supply chain managers can deliberate on decisions, strategy, issues and policy by developing scenarios using SD tools and software packages. However the research limitation is that this is a simulation in a specific supply chain context. Generalization of this scenario may not be possibleKeywords: Causal Loop Diagram (CLD), Information and Communication Technology (ICT), Inventory, Supply Chain Management (SCM) ICT, System Dynamics (SD)

Through an international business risk management lens, the widespread and catalytic implications of the 2020 COVID-19 pandemic on the supply chains (SCs) of fashion multinational corporations (MNC) are analyzed to contribute to existing research on supply chain management (SCM). While a movement towards agile, networked supply chain models had been in consideration for many firms prior to the outbreak, the pandemic highlights issues inherent in supply chains that employ concentrated production. We examined the current state of fashion supply chains, risks that have arisen historically and recently, and existing risk mitigation methods. We found that while lean supply chain management is primarily favored for its cost and waste reduction advantages, the structure is limited by the lack of supply chain transparency that results as well as the increasing demand volatility observed even before the COVID-19 outbreak. Although this problem might exist in the agile supply chain, agile supply chains combat this by focusing on enhancing communication and buyer-supplier relationships to improve information exchange. However, this structure also entails an associated increase in inventory and inventory costs. The COVID-19 pandemic has caused supply and demand disruptions which have resonating effects on supply chain activities and management, indicating a need to build flexibility to mitigate epidemic and demand risks. To address this, several strategies that firms can adopt to control for such risks are outlined and key areas for further research are identified which consider parties both upstream and downstream of the fashion supply chain.

The increasing prevalence of projects carried out in a distributed mode is creating new challenges with respect to the coordination that is necessary to ensure the proper integration and delivery of project outcomes. From a practical perspective, we propose to initiate a discussion of performance metrics for distributed projects. We focus on three issues: how to identify project management metrics that take into account the efforts of each partner involved; how to develop indicators that provide information about clients' expectations and finally, how to measure the project's value for the firm's development and growth. Building on recent research into different aspects of the virtual organisation and supply chain management, we propose a methodology for the construction of performance metrics for a distributed project in response to these issues. The proposed methodology integrates the Balanced Scorecard and Product Value Chain approaches and is illustrated with the case of a distributed remanufacturing project.

PurposeThe purpose of this paper is to describe the development and teaching of graduate courses providing in‐depth experiential learning employing commercial supply chain management software. The benefits of teaching such courses are described, the challenges in offering such courses are identified, and some solutions to overcome the challenges are offered.Design/methodology/approachThe experiences of the authors in developing and teaching supply chain management courses utilizing commercial software provided a basis for discussing the benefits and challenges associated with teaching students the management of modern supply chains using commercial decision‐support software.FindingsIncorporating commercial software in university programs presents a myriad of challenges and therefore is rarely done. However, providing students with in‐depth knowledge of commercial logistics and supply chain management software improves their understanding of supply chain issues and provides a key differentiator in the marketplace. Modeling real‐world supply chains using commercial software enhances student's education by providing relevant experiential exposure to real‐world problems and decision‐support tools.Originality/valueThe observations of the authors in developing and teaching courses in supply chain management utilizing commercial software afford a unique viewpoint and roadmap for others regarding teaching supply chain management in academic environments.

PurposeThis paper primarily aims to address the following research question: Are techniques and practices developed for uninterrupted, for‐profit supply chains adaptable to the not‐for‐profit (NFP), interrupted context? In other words, can the managerial tools of business logistics be used in humanitarian relief logistics?Design/methodology/approachA combination of grounded research and case‐based research methods is used. Grounded research methods involve coding interview data to enable constant comparison of the data with emerging categories. Three managerial representatives of a single case organisation, the Mennonite Central Committee (MCC), are interviewed.FindingsMCC is a small NFP organisation operating in interrupted environments. As a matter of strategy, it pursues economic and social objectives. Strategic partnerships with “like‐minded” organisations are critical to achieve these objectives. To assess its achievements, MCC needs a wide range of performance measures.Research limitations/implicationsSince the paper is based on a single case, it is difficult to generalise the results beyond MCC, a small, faith‐based NFP providing humanitarian assistance. There are future research opportunities to study more cases and search for additional themes.Practical implicationsPartnerships and performance measurement are important elements of supply chain management (SCM) in humanitarian relief, characterised by NFP operations in interrupted environments. SCM tools and techniques created in the for‐profit or business context, for partnership formation (e.g. “how to commit”) and performance measurement (e.g. balanced scorecard), should be adapted for the humanitarian context.Originality/valueThere is a growing literature on supply chain interruptions, but very little research on NFP sector supply chains, despite pressing needs for effective SCM within the NFP context. Also, there are relatively few studies on adapting business logistics practices for the humanitarian logistics context. The paper addresses these issues.