An integrated model of supply chain performance evaluation and decision-making using structural equation modelling and fuzzy AHP

Abstract

This paper aims to propose a comprehensive evaluation tool and decision model, which can help the practitioners to gauge their supply chain performance and guide them in decision-making for further improvements. The model provides a salient notion of integrated supply chain performance evaluation approach distilled from the literature. The five important performance evaluation criteria (supply chain planning performance, supply chain partnership performance, production performance, delivery and logistic performance and customer service and satisfaction performance) and corresponding 19 sub-criteria have been identified. An integrated methodology of structural equation modelling (SEM) and fuzzy analytic hierarchy process (FAHP) have been applied to the proposed model to a real case study of Indian textile–apparel–retail supply chain network.

Keywords:

• supply chain performance evaluation
• structural equation modelling
• fuzzy analytic hierarchy process
• decision making levels