Prioritizing the Distributor’s Key Performance Indicators and Constraints to Implement TOC-Based Solution for Outbound Supply Chain Network

Chandrashekhar Chaudhari (), Vivek Khanzode (), Rauf Iqbal () and Vishwas Dohale ()
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Chandrashekhar Chaudhari: National Institute of Industrial Engineering
Vivek Khanzode: National Institute of Industrial Engineering
Rauf Iqbal: National Institute of Industrial Engineering
Vishwas Dohale: National Institute of Industrial Engineering

A chapter in Advances in Best-Worst Method, 2023, pp 146-160 from Springer

Abstract: Abstract The concept of Theory of Constraints (TOC) was introduced by Eliyahu Goldratt, an Israeli Physicist, in his book THE GOAL in 1984. TOC is a management philosophy that focuses on the management of the constraint that limits the performance of a system. Although TOC has benefited organizations within many domains, namely – manufacturing, supply chain, project management, sales, and finance, TOC implementation in the outbound supply chain remains the topic of investigation. Thus, it is crucial to determine the constraints to implement TOC in the outbound supply chain. Further, there is a set of certain Key Performance Indicators (KPI) of the distributors that gets enhanced by implementing TOC’s solution in the outbound supply chain. This study proposes multi-criteria decision-making based Best-Worst method to prioritize the most important constraint to implement TOC’s solution in the outbound supply chain. Further, we prioritize the KPIs for the distributors in the outbound supply chain. This study is expected to aid researchers and practitioners in determining the critical constraints and KPIs to focus on and improve the outbound supply chain performance.

Keywords: Theory of Constraints; Constraint identification; Distributors’ KPIs; Outbound supply chain; Best-Worst Method (BWM) (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/978-3-031-24816-0_12

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