Lean supply chain performance measurement

Abstract

Purpose – The purpose of this paper is to present supply chain metrics and to propose a fuzzy-based performance evaluation method for lean supply chain. Design/methodology/approach – To understand the overall performance of cost competitive supply chain the paper investigates the alignment of market strategy and position of the supply chain. Since lean is applicable in many supply chains, the authors propose a set of metrics to evaluate supply chain performance. Moreover, the paper uses a fuzzy model to evaluate the performance of cost competitive supply chains. Fuzzy is an appropriate model method when uncertainty is present. It also allows modelling of a significant number of performance metrics across multiple supply chain elements and processes. Competitive strategy can be achieved by using a different weight calculation for different supply chain situations. Findings – Research provides optimal metrics for lean supply chains. The proposed method can measure the performance of lean supply chains using a fuzzy approach and competitive strategies. Research limitations/implications – The metrics which have been selected to measure the performance of lean supply chains is particularly applicable for high volume, low-price products. Practical implications – By identifying optimal performance metrics and applying performance evaluation methods, managers can predict the overall supply chain performance under lean strategy. By identifying performance for each metric they can also categorize the existing performance and optimise them accordingly. Originality/value – This study provides a performance evaluation method for supply chain managers to assess the effects of lean tools and competitive strategies.