FUZZY METRICS IN SUPPLY CHAIN AGILITY: CHAIN MANAGEMENT (1)

Fuzzy logic technique has been applied by many researchers to measure supply chain performance in the recent decade. Such applications include the study involving an innovative performance measurement system for supply chain performance improvement using fuzzy set theory.

Based on the merits of fuzzy logic as a tool, the studies which focused on its applications in supply chain performance measurement have a lot of accruable advantages compared to studies which focused on traditional methods. The application of fuzzy logic operation in supply chain performance measurement is easier to perform and more accommodating compared to the conventional approaches, especially when the number of operated input data is large.

The performance measures are identified and measured together with their respective priority factors (weighing factors). Some examples of performance measures include customer satisfaction, delivery time, cost, flexibility and quality as stated in the early lines of the paper. The weighing factors are developed by managers and other experts based on their effects on the supply chain performance.

Teamwork of Performance Measurement

It is a challenging task beyond any individual to assess the comprehensive performance of the whole supply chain. In order to obtain the objective assessment of the holistic performances, channel-spanning participation of performance measurement activity is required. In this research, a performance measurement team (PMT) is suggested. The PMT is composed of the representatives from various management areas of supply chain activities. These representatives can be shop floor operators, process supervisors, department managers, plant managers, etc. Members of the PMT serve mainly as the evaluators, and provide a variety of opinions based on measurement activity. This team of evaluators come from various management are as and have wide background and experiences; and thus they can represent a wide range of views. Because the evaluators have varying experiences and background in specific areas, the relative weights of their opinion are not necessarily equal to each other. When incorporating their opinions, the relative weights of evaluators’ opinions should be assigned. There are a variety of ways to derive the weights, the common methodology being questionnaire survey and consolidation.