Application of DEMATEL and MMDE for Analyzing Key Influencing Factors Relevant to Selection of Supply Chain Coordination Schemes

Any selection decision of supply chain coordination schemes (SCCS) is essentially affected by the environment where the schemes are to be implemented, the necessary conditions required for their implementation, the risk associated with the implementation, and the impact on the performance of the supply chain. Because of the multi-dimensional characteristics; the selection of appropriate SCCS in a given situation remains a challenging task for supply chain managers. This study explores relevant factors that influence this selection process. A structural model is proposed to capture relationships among these factors for development of Impact Relationship Maps (IRM) by applying Decision Making Trial and Evaluation Laboratory (DEMATEL) and Maximum Mean De-Entropy (MMDE) algorithm. A study has been conducted and the outcome leads to add significant value to the decision making process with knowledge on the roles of the factors and inter-factor relations which helps in taking meaningful decision on SCCS selection and implementation.