A performance assessment framework for supply chain networks

Abstract

In multi-echelon decentralized supply chains, distribution logistics (inclusive of both material and information flows) play a leading part in helping a supply chain gain advantage over competitors. The uncertain consumer demand and non-optimal operation of distribution nodes are some of the major problems that a supply chain must contend with. A distribution node in the network generally belongs to different companies thereby encouraging the decentralized management of nodes. Decentralized management may worsen the overall performance of the supply chain system and in turn affect the supply chain cost and customer satisfaction. Our work is focused on developing an assessment framework to examine and enhance the performance of an existing supply chain. Data from an existing network is used to determine the bottlenecks or poorly performing nodes. With the knowledge of supply chain architecture, time-series data analysis techniques are employed in this effort. Simulation based optimization are extensively employed to enrich the performance of the inferior nodes close to achievable benchmark standards by minimizing the supply chain cost. The concepts presented will be complemented by realistic simulation examples. © 2007 Elsevier B.V. All rights reserved.