Performance measurement process and method in agile supply chain

Abstract

Based on operation characteristics of agile supply chain, the structure of performance measurement index system in agile supply chain management was studied. A hierarchal measurement index system was established which was applicable to make decision for strategy layer of agile supply chain. Measurement benchmark issue was discussed and a process framework for agile supply chain performance measurement based on benchmarking was proposed, including the construction of internal and external benchmark databases. An Analytic Hierarchy Process (AHP) algorithm was suggested to calculate evaluation weights of measurement indexes, and an improved fuzzy comprehensive evaluation algorithm was presented to solve the complicated performance measurement problem in the Web-based performance measurement prototype system. Implementation of the process framework indicated that it was an effective approach to performance measurement in agile supply chain.