The alternative ranking using two-step logarithmic normalization method for benchmarking the supply chain performance of countries

Abstract

Supply chain performance signifies the success of countries in material and information flow within international trade activities. Countries strive to enhance their supply chain performance by increasing connectivity with partner countries and reducing dwell times at logistics hubs. In this study, the supply chain performance of countries based on international tracking indicators is examined using a multi-criteria decision-making approach. The paper encompasses two primary objectives. The first objective is the determination of the supply chain performance of countries. The second one is the development of a novel alternative ranking method. The study employs 10 supply chain key performance indicators as criteria and utilizes data from 72 countries. The data is sourced from logistics performance index reports published by the World Bank. The modified preference selection index (MPSI) is employed for criterion weighting. For the ranking of countries, a novel alternative ranking method named the “Alternative Ranking using two-step LOgarithmic Normalization (ARLON)” method is proposed. Through the implementation of the MPSI-ARLON hybrid method, supply chain performance and rankings of countries are computed. The findings are supported by sensitivity and comparative analyses. Furthermore, robustness tests are conducted for the ARLON method. The research concludes by presenting implications and managerial insights derived from the ARLON method.