Abstract
Article history: Received 15 April 2010 Received in revised form 15 May 2010 Accepted 16 May 2010 Available online 17 May 2010 Measuring the performance of a supply chain (SC) is normally of a function of various parameters. Such a problem often involves in a multiple criteria decision making (MCDM) problem where different criteria need to be defined and calculated, properly. During the past two decades, Analytical hierarchy procedure (AHP) and DEMATEL have been some of the most popular MCDM approaches for prioritizing various attributes. The study of this paper uses a new methodology which is a combination of AHP and DEMATEL to rank various parameters affecting the performance of the supply chain. The DEMATEL is used for understanding the relationship between comparison metrics and AHP is used for the integration to provide a value for the overall performance. © 2010 Growing Science Ltd. All rights reserved.
Highlights
In the era of globalization, supply chains are being treated as extended enterprises
According to Berrah and Cliville (2007), a performance measurement system can be seen as a multi criteria tool, which is made by a set of metrics
This paper aims to help managers in supply chain for decision making
Summary
In the era of globalization, supply chains are being treated as extended enterprises. In order to achieve supply chain goal of fulfilling customer orders more quickly and efficiently than other competitors, a supply chain needs continuous improvements (Hausman, 2002) It demands that effective performance measurements be established and a system for measuring performance is required. The purpose of calculating the performance, on one hand, is to give more information about the degree of achievement of the objectives and on the other hand, is to find actions to improve the values of metrics and total performance (Berrah & Cliville, 2007) In this sense, the so-called performance measurement systems are the necessary tools to support decision-making (Berrah & Cliville, 2007). The major problems in designing performance measurement systems include: 1. The identification of the performance structure, in which the parameters and necessary metrics for calculation the performance is identified
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