An integrated approach with SEM, fuzzy-QFD and MLP for supply chain management strategy development

Abstract

This study proposes an integrated approach to determine the most suitable strategies, based on structural equation modelling (SEM), fuzzy-QFD, and multi-objective linear programming model (MLP). The relationships between supply chain capabilities, competitive advantages, and business performance are identified using SEM. An integrated SEM and fuzzy-QFD approach is proposed to transform the significant factors into SCM strategies. Then, MLP model is applied to identify suitable strategic actions according to multiple conflicting objectives under a budget constraint. A case study from the Vietnamese food industry is given to illustrate the proposed methodology. The outcome of the study reveals that companies should pay more attention to supply chain capabilities for SCM strategy development, which can help to gain improvement of their competitiveness and business performance. The proposed methodology also provides a comprehensive picture for companies by transforming such relationships into specific SCM strategic actions to obtain the optimal solution according to their preference.