Abstract
The core object of this chapter is to develop efficiency measurement technique which links SC processes' efficiency (SCPE) to a firm's financial policy (FFP) through demonstrating and utilising the connection between SCPE and a firm's financial efficiency (FFE). The Dempster Shafer/Analytical Hierarchy Processes (DS/AHP) model is employed to link SCPE to the firm's financial efficiency through defining the relevant importance weights of SCPE measures regarding the preferences of FFE. The chapter also introduces a SC Financial Link Index (SCFLI) to examine the degree to which SCPE is linked to the FFE objectives. This index offers an effective supply chain management (SCM) tool to provide continuous feedback on SCPE and recognise the suitable employed remedial actions. Analysing this index offers opportunities for detailed evaluation of SCPE and empowers firms to trace SC processes that need improvement, causing in more control on daily SC operations. The proposed method permits the evaluation, monitoring, and control of SCPE to enhance SC policy for better alignment with the FFP. Linking SCPE to the FFP objectives empowers firms to gain competitive advantages and formulate strategies for improved SCM through linking such strategies to the focus area of improving the FFE.
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