An Empirical Study on Supply Chain Management Performance Measurement through AHP

by Ferdoush Saleheen, Md. Mamun Habib, Zurina Hanafi

December, 2018

Abstract

Supply chain management (SCM) performance measurement has gained noteworthy considerations from researchers and practitioners in the manufacturing paradigms for improving organizational effectiveness that can be applied to pronounce and review the historical performance, as well as to set performance targets for the future.

Precise diagnosis and analysis of SCM performance is imperative to attain and enhance organizational productivity and profitability through focusing strategic, tactical and operational planning as well as control. Enterprises scrutinize the best fit to evaluate the existing approaches of performance measurement framework including financial and operational. The researcher investigates a multi criteria decision analysis (MCDA) approach to demonstrate how analytic hierarchy process (AHP) is applied to select the best performance measurement framework and illustrates a decision model to structure the problem related to select the supply chain performance measurement system in a hierarchical form with substitutes to the decision maker. The study also determines that there are nine methods where supply chain performance could be evaluated.

However, it is yet to establish and validate a comprehensive approach which can establish both qualitative and quantitative factors along with different decision making levels and rank the decision preferences which constitutes a gap between the theory and their potential application. Therefore, future contributions to the subject is indispensable through new innovation of a comprehensive supply chain performance measurement model.

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