Performance metrics in supply chain management

Jack Kleijnen () and M T Smits
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M T Smits: Tilburg University (UVT)

Journal of the Operational Research Society, 2003, vol. 54, issue 5, 507-514

Abstract: Abstract This survey paper starts with a critical analysis of various performance metrics for supply chain management (SCM), used by a specific manufacturing company. Then it summarizes how economic theory treats multiple performance metrics. Actually, the paper proposes to deal with multiple metrics in SCM via the balanced scorecard — which measures customers, internal processes, innovations, and finance. To forecast how the values of these metrics will change — once a supply chain is redesigned — simulation may be used. This paper distinguishes four simulation types for SCM: (i) spreadsheet simulation, (ii) system dynamics, (iii) discrete-event simulation, and (iv) business games. These simulation types may explain the bullwhip effect, predict fill rate values, and educate and train users. Validation of simulation models requires sensitivity analysis; a statistical methodology is proposed. The paper concludes with suggestions for a possible research agenda in SCM. A list with 50 references for further study is included.

Keywords: supply chain; logistics; performance measurement; balanced scorecard; simulation; system dynamics (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (45)

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DOI: 10.1057/palgrave.jors.2601539

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