Abstract
It is necessary to evaluate performance using a proper combination of all resources of supply chain in the best possible way to provide products and services in the market. One strategy to measure supply chain efficiency is the data envelopment analysis (DEA), which involves use of current inputs and outputs to evaluate supply chain performance. Therefore, the outcome of each DEA evaluation is not suitable for providing suitable benchmark for the future. Hence, managers are not able to improve the activities of their subset using the results of DEA model. For this purpose, we forecast data of units under evaluation using system dynamics simulation and then we present a proper model to formulate strategies for improving performance using the proposed DEA model. Finally, we implemented the designed algorithm in the milk industry of Fars province (Iran), and proper strategies for improving the efficiency of this industry were developed.
Highlights
In today’s global market, companies are not units with unique brands that can operate independently
We introduced firstly the method of system dynamics simulation to forecast the data of the units under evaluation and we modify the method of using the classic data envelopment analysis (DEA) models to provide a proper model
The contributions are as follows: - Based on system dynamic, cause and effect relationships between demand management, orders delivery, production flow management and inventory completion or purchase, are identified as the processes of supply chain business. - Simulation of the supply chain based on the system dynamics identifies key business processes in the supply chain. - Future efficiency of supply chain is forecasted using system dynamics simulation and network DEA and a new ranking approach is proposed. - Benchmark of inefficient supply chain is presented. - Based on the results of our approach, strategies are proposed for improving performance to achieve the best performance of the inefficient unit
Summary
In today’s global market, companies are not units with unique brands that can operate independently. The complexity of goods and services in today’s world is so that an organization can rarely produce or provide a service by itself without. The challenges in the business world have led to the emergence of supply chain approach that goes beyond the boundaries among the companies and includes all interactions, ranging from supply of raw materials to delivering finished goods to customers. In the challenging and intensely competitive environment, supply chains must constantly improve their performance to ensure their survival
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