Multi-Criteria Decision Analysis of Supply Chain Practices and Firms Performance in Nigeria

Abstract

Abstract Companies are facing numerous pressures and challenges in order to be competitive in the market and meet the requirements of their customers which require an improvement in the supply chain practices of the firms to be more effective and efficient for sustainable competitive advantage. This study examines the use of a multi-criteria decision making method using analytic network process (ANP) to estimate the how supply chain activities of the selected manufacturing firms’ influences its firm performance in other to enhance the satisfaction of customers. The population of the study is the manufacturing firms quoted in the Nigeria stock exchange. An ANP-based questionnaire was administered to Managers of selected manufacturing firms for pairwise comparison of supply chain factors relative influences and dependencies on their customers. A nonlinear network model was built to capture all the factors of supply chain practices and firms performance into clusters, nodes and dependences for the purpose of estimating various influences supply chain practices on the performance of the various companies studied.. Data collected were analysed using software of Super decision 3.0version. The results revealed factors of supply chain practices that have a great connection with one another and strong relationship indicating that without the implementing the key factors of supply chain there would not be a significant improvement in the performance of the organisation which will also affects the desire of the customers. The ANP model has helped to show the interdependencies and feedback among the various factors of practices of supply chain to augment the level of performance of the firms.