Multi‐criteria supply chain performance evaluation

Abstract

Purpose Understanding the significance of supply chain, demands need of multiple criteria for its performance evaluation. The aim of this paper is to propose an approach to evaluate the performance of supply chain using multiple criteria. Design/methodology/approach A multi‐criteria decision making tool, like analytic hierarchy process is used to develop an eight step methodology for performance evaluation. The proposed methodology is also elucidated with an illustration and a case from Indian chemical company. Findings Supply chain performance number is computed, suggesting the present performance status of the supply chain. The methodology also helps rank the various links according to its performance. The analysis leads in computation of supply chain performance number (SCPN): the value lies between 0 and 1. Research limitations/implications The methodology can be suitably modified to accommodate any number of criteria and supply links, given the structure of the supply chain. Practical implications A case from an Indian chemical industry is presented in this paper. The findings of which, are encouraging and have benefited the practicing mangers in various ways. Originality/value This paper presents a unique approach for supply chain performance evaluation considering multiple criteria, with a flexibility to modify and analyze using the available data sets.

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