Evaluating supply chain integration: a case study using fuzzy logic

Abstract

This paper aims at investigating a new methodology to evaluate supply chain integration by applying the fuzzy sets theory. Fuzzy sets proved successful in environments similar to supply chain management in that they help to formalise human reasoning patterns and to develop high-performance expert systems in contexts where data are affected by uncertainty and/or vagueness: e.g. fuzzy sets have been already used in inventory planning, to improve organisational effectiveness, to perform suppliers’ evaluation etc. In particular, the study presented here deals with the ways to measure and achieve supply chain integration and it mainly focuses on the external integration (i.e. on the ability to leverage partnerships within the chain), clustered in two areas, i.e. the network design and the management policies. The new methodology has been applied to a case study which consists of a 3-stage supply chain belonging to the beauty and personal care industry. Results of the case-study indicate that the companies still have important edges for improvement towards a complete integration of their supply processes. In particular, the considered supply chain should prioritise the integration of technology-driven investments and in the distribution area.

Keywords:

• supply chain management
• fuzzy set
• case study

Acknowledgments

The authors wish to thank Eng A. Ianora, former student of Politecnico di Milano, and Dr G. Novakova, former research fellow of Politecnico di Milano for their insightful suggestions.