Coordination in supply chains: an evaluation using fuzzy logic

Abstract

Supply chain coordination (SCC) is an effective approach to improve supply chain (SC) performance. The coordination can be achieved when interdependent entities work together by sharing resources and information to achieve common objectives aligned to maximise customer value for the entire SC. There are a number of mechanisms by which the SC members can coordinate, e.g. contracts, information sharing, information technology and collaborative initiatives. To communicate frequently and effectively, the partners are required to have good information systems and capability to share information. To coordinate with each other the SC members are required to have capabilities to implement coordination mechanisms effectively. In this paper, a model is proposed to measure the effect of these mechanisms on the extent of coordination. Currently, there is no scale of measurement reported in the literature to measure the SCC. A fuzzy logic approach combined with the analytic hierarchy process (AHP) is proposed to evaluate the extent of coordination. The proposed methodology is demonstrated through a case study of an automotive parts manufacturer.

Keywords:

• Supply chain coordination
• AHP
• Fuzzy logic
• Information technology
• Information sharing

Acknowledgements

The authors are grateful to the reviewers for their constructive comments and observations which have helped to improve the quality of the paper.