An environmental uncertainty-based diagnostic reference tool for evaluating the performance of supply chain value streams

David Gallear, Abby Ghobadian, Yanhong Li, Nicholas Oregan*, Paul Childerhouse, Mohamed Naim, Nicholas O'Regan

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

This research has responded to the need for diagnostic reference tools explicitly linking the influence of environmental uncertainty and performance within the supply chain. Uncertainty is a key factor influencing performance and an important measure of the operating environment. We develop and demonstrate a novel reference methodology based on data envelopment analysis (DEA) for examining the performance of value streams within the supply chain with specific reference to the level of environmental uncertainty they face. In this paper, using real industrial data, 20 product supply value streams within the European automotive industry sector are evaluated. Two are found to be efficient. The peer reference groups for the underperforming value streams are identified and numerical improvement targets are derived. The paper demonstrates how DEA can be used to guide supply chain improvement efforts through role-model identification and target setting, in a way that recognises the multiple dimensions/outcomes of the supply chain process and the influence of its environmental conditions. We have facilitated the contextualisation of environmental uncertainty and its incorporation into a specific diagnostic reference tool.

Original languageEnglish
Pages (from-to)1182-1197
Number of pages16
JournalProduction Planning and Control
Volume25
DOIs
Publication statusE-pub ahead of print - 25 Jun 2013

Bibliographical note

This is an Accepted Manuscript of an article published by Taylor & Francis Group in Production Planning & Control on 25 June 2013, available online at: http://www.tandfonline.com/10.1080/09537287.2013.808838

Keywords

  • data envelopment analysis
  • Diagnostic reference tool
  • environmental uncertainty
  • performance measurement
  • supply chain

Fingerprint Dive into the research topics of 'An environmental uncertainty-based diagnostic reference tool for evaluating the performance of supply chain value streams'. Together they form a unique fingerprint.

  • Cite this