Decision Support System for Supply Chain Performance Measurement: Case of Textile Industry

Abstract

The chapter aims to propose decision support framework for identification of key performance indicators for supply chain performance measurement in textile industry. To meet the objective, hierarchical model is developed including criteria, sub-criteria, alternatives. Proposed decision support system (DSS) is developed with objective as textile supply chain performance measurement with 4 stakeholder value creation perspectives (Financial, Customer, Internal business processes, Innovation and learning) suggested by balanced scorecard (BSC) as criteria, having 23 sub-criteria (key performance indicators) and 3 supply chain operations (Procurement-Production-Distribution) as alternatives. Structured Delphi method and Minitab 17.0 software for statistical analysis are used for the development of decision support framework. Whereas, for establishing pair wise comparison and analyzing the relative importance of these criteria, sub-criteria and alternative, analytical hierarchy process (AHP) is used. The paper demonstrates the application of decision support system in identifying key performance indicators and analyzing the importance of KPIs towards overall performance of supply chain in textile. The proposed system is put to test at four textile case industries. Case company wise implication as well general implications on textile supply chain performance is presented. Also, managerial implication and limitations are presented. Proposed study presented novel approach in developing DSS for textile supply chain performance measurement, which is very rare one. This DSS will be used for identifying key performance metrics/indicators and also analyzing their importance towards supply chain performance. Use of BSC perspective has given framework wholesome coverage of all stakeholders’ consideration. Also, involvement of supply chain cyclic operation added consideration of supply chain partners.