IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v54y2003i5d10.1057_palgrave.jors.2601539.html
   My bibliography  Save this article

Performance metrics in supply chain management

Author

Listed:
  • J P C Kleijnen

    (Tilburg University (UVT))

  • M T Smits

    (Tilburg University (UVT))

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.

Suggested Citation

  • J P C Kleijnen & M T Smits, 2003. "Performance metrics in supply chain management," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(5), pages 507-514, May.
    • Handle: RePEc:pal:jorsoc:v:54:y:2003:i:5:d:10.1057_palgrave.jors.2601539
    DOI: 10.1057/palgrave.jors.2601539
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/palgrave.jors.2601539
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/palgrave.jors.2601539?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Manmohan S. Sodhi, 2001. "Applications and Opportunities for Operations Research in Internet-Enabled Supply Chains and Electronic Marketplaces," Interfaces, INFORMS, vol. 31(2), pages 56-69, April.
    2. Peter C. Smith & Maria Goddard, 2008. "Performance Management and Operational Research: A Marriage Made in Heaven?," Palgrave Macmillan Books, in: Richard Thorpe & Jacky Holloway (ed.), Performance Management, chapter 9, pages 120-136, Palgrave Macmillan.
    3. D J Hamblin, 2002. "Rethinking the management of flexibility—a study in the aerospace defence industry," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(3), pages 272-282, March.
    4. Persson, Fredrik & Olhager, Jan, 2002. "Performance simulation of supply chain designs," International Journal of Production Economics, Elsevier, vol. 77(3), pages 231-245, June.
    5. van Groenendaal, W.J.H., 1998. "The Economic Appraisal of Natural Gas Projects," Other publications TiSEM a0ff517c-2041-4457-adac-7, Tilburg University, School of Economics and Management.
    6. G Francis & J Holloway, 2002. "Beyond comparisons—the role for the operational researcher in benchmarking," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(3), pages 283-291, March.
    7. Lai, Kee-hung & Ngai, E. W. T. & Cheng, T. C. E., 2002. "Measures for evaluating supply chain performance in transport logistics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(6), pages 439-456, November.
    8. Uday Rao & Alan Scheller-Wolf & Sridhar Tayur, 2000. "Development of a Rapid-Response Supply Chain at Caterpillar," Operations Research, INFORMS, vol. 48(2), pages 189-204, April.
    9. Otto, Andreas & Kotzab, Herbert, 2003. "Does supply chain management really pay? Six perspectives to measure the performance of managing a supply chain," European Journal of Operational Research, Elsevier, vol. 144(2), pages 306-320, January.
    10. Beamon, Benita M., 1998. "Supply chain design and analysis:: Models and methods," International Journal of Production Economics, Elsevier, vol. 55(3), pages 281-294, August.
    11. A Harrison & C New, 2002. "The role of coherent supply chain strategy and performance management in achieving competitive advantage: an international survey," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(3), pages 263-271, March.
    12. N Viswanadham & N R Srinivasa Raghavan, 2000. "Performance analysis and design of supply chains: a Petri net approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(10), pages 1158-1169, October.
    13. S A Starbird, 2001. "Penalties, rewards, and inspection: provisions for quality in supply chain contracts," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 52(1), pages 109-115, January.
    14. van Schaik, F.D.J., 2000. "Operationele kengetallen hebben de toekomst bij het beoordelen van ondernemingen," Other publications TiSEM a731a897-5281-458f-8446-3, Tilburg University, School of Economics and Management.
    15. Kleijnen, J.P.C., 2000. "Strategic directions in verification, validation and accreditation research : A personal view," Other publications TiSEM eee4931d-abef-4137-8112-7, Tilburg University, School of Economics and Management.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kleijnen, J.P.C. & Smits, M.T., 2003. "Performance metrics in supply chain management," Other publications TiSEM 80777aed-0c9f-4ded-b0bb-f, Tilburg University, School of Economics and Management.
    2. Kleijnen, J.P.C., 2005. "Supply chain simulation tools and techniques : A survey," Other publications TiSEM d0050225-57bd-4114-ab15-7, Tilburg University, School of Economics and Management.
    3. Jie, Ferry, 2011. "Australian Lamb Supply Chain: A Conceptual Framework," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 113738, Australian Agricultural and Resource Economics Society.
    4. Kleijnen, J.P.C., 2003. "Supply Chain Simulation : A Survey," Discussion Paper 2003-103, Tilburg University, Center for Economic Research.
    5. Luís Alberto Godinho Coelho & Rui Manuel Mendes Mansidão, 2014. "Logistics Performance: a Theoretical Conceptual Model for Small and Medium Enterprises," CEFAGE-UE Working Papers 2014_12, University of Evora, CEFAGE-UE (Portugal).
    6. Wajahat Hussain & Jabir Hussain & Sajjad Akbar & Numair Ahmad Sulehri & Zahra Maqbool, 2014. "The Effects of Supply Chain Management Practices (Strategic Suppliers Partnership, Information Sharing, and Postponement) On Organizational Performance in Consumer Goods Manufacturing Industry of Paki," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 2(8), pages 351-361.
    7. Kottala Sri Yogi, 2015. "Performance evaluation of reverse logistics: A case of LPG agency," Cogent Business & Management, Taylor & Francis Journals, vol. 2(1), pages 1063229-106, December.
    8. Qiang, Patrick & Nagurney, Anna, 2012. "A bi-criteria indicator to assess supply chain network performance for critical needs under capacity and demand disruptions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(5), pages 801-812.
    9. Hsin Hsin Chang, 2009. "An empirical study of evaluating supply chain management integration using the balanced scorecard in Taiwan," The Service Industries Journal, Taylor & Francis Journals, vol. 29(2), pages 185-202, February.
    10. Sambracos, Evangelos & Ramfou, Irene, 2010. "Assessing the role of goods transport in organizational performance," MPRA Paper 52204, University Library of Munich, Germany.
    11. Vonderembse, Mark A. & Uppal, Mohit & Huang, Samuel H. & Dismukes, John P., 2006. "Designing supply chains: Towards theory development," International Journal of Production Economics, Elsevier, vol. 100(2), pages 223-238, April.
    12. Hsin Chang & Chung-Jye Hung & Kit Wong & Chin-Ho Lee, 2013. "Using the balanced scorecard on supply chain integration performance—a case study of service businesses," Service Business, Springer;Pan-Pacific Business Association, vol. 7(4), pages 539-561, December.
    13. Santos, Sérgio P. & Belton, Valerie & Howick, Susan & Pilkington, Martin, 2018. "Measuring organisational performance using a mix of OR methods," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 18-30.
    14. Juneho Um, 2017. "The impact of supply chain agility on business performance in a high level customization environment," Operations Management Research, Springer, vol. 10(1), pages 10-19, June.
    15. Ilkka Sillanpaa & Pekka Kess, 2011. "Supply Chain Performance Measurement Framework for Manufacturing Industries – A Theoretical Approach," MIC 2011: Managing Sustainability? Proceedings of the 12th International Conference, Portorož, 23–26 November 2011 [Selected Papers],, University of Primorska, Faculty of Management Koper.
    16. Maestrini, Vieri & Luzzini, Davide & Maccarrone, Paolo & Caniato, Federico, 2017. "Supply chain performance measurement systems: A systematic review and research agenda," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 299-315.
    17. Chopra, Shweta & Laux, Chad & Schmidt, Edie & Rajan, Prashant, 2017. "Perception of Performance Indicators in an Agri-Food Supply Chain: A Case Study of India’s Public Distribution System," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 8(2), March.
    18. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    19. Jianxiong Zhang & Lin Feng & Wansheng Tang, 2014. "Optimal Contract Design of Supplier-Led Outsourcing Based on Pontryagin Maximum Principle," Journal of Optimization Theory and Applications, Springer, vol. 161(2), pages 592-607, May.
    20. Kleijnen, Jack P. C., 2005. "An overview of the design and analysis of simulation experiments for sensitivity analysis," European Journal of Operational Research, Elsevier, vol. 164(2), pages 287-300, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorsoc:v:54:y:2003:i:5:d:10.1057_palgrave.jors.2601539. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.