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Fuzzy approach to supply chain management

Author

Listed:
  • Jaroslava Smolová

    () (Department of Management, Faculty of Economics, University of South Bohemia In České Budějovice)

  • Martin Pech

    () (Faculty of Economics, University of South Bohemia In České Budějovice)

Abstract

During recent years, the supply chain performance management has become a key strategic consideration. Many manufacturers seek to collaborate with their suppliers and customers in order to upgrade their competitiveness and management performance. Because of complexity, uncertainty and vagueness inherent in supply chains, performance measurement using fuzzy approach was also identified as a new research direction. The main aim of the paper is focused on evaluation of logistic dimensions (sets of logistic indicators) in supply chain, where the uncertainty arises from the inability to perform adequate measurement, and deals with application of fuzzy approach, that provides a formal method for modeling imprecise, vagueness or incomplete relationships inherent in supply chains. Gathered data from questionnaires are analyzed by cluster analysis. Afterwards fuzzy methods are used evaluations of basic five dimensions, which contain several numbers of logistic indicators. The new methodology adopted from Soyer, Kabak, & Asan (2007) research based on the intersection of fuzzy sets and fuzzy entropy method has been applied to evaluations in a case study. Results are afterwards modified by a applying of different membership functions, and changes of dimensions measures are analyzed. Finally supply chain modifying by adding new companies with capability of bind to supply chain are examined. New results of evaluation are compared according to new companies’ membership to different clusters.

Suggested Citation

  • Jaroslava Smolová & Martin Pech, 2011. "Fuzzy approach to supply chain management," Economics Working Papers 2011-01, University of South Bohemia in Ceske Budejovice, Faculty of Economics.
  • Handle: RePEc:boh:wpaper:01_2011
    as

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    References listed on IDEAS

    as
    1. Wu, Y. & Frizelle, G. & Efstathiou, J., 2007. "A study on the cost of operational complexity in customer-supplier systems," International Journal of Production Economics, Elsevier, vol. 106(1), pages 217-229, March.
    2. Martinez-Olvera, Cesar, 2008. "Entropy as an assessment tool of supply chain information sharing," European Journal of Operational Research, Elsevier, vol. 185(1), pages 405-417, February.
    3. Chang, Sheng-Lin & Wang, Reay-Chen & Wang, Shih-Yuan, 2006. "Applying fuzzy linguistic quantifier to select supply chain partners at different phases of product life cycle," International Journal of Production Economics, Elsevier, vol. 100(2), pages 348-359, April.
    4. Shuiabi, Eyas & Thomson, Vince & Bhuiyan, Nadia, 2005. "Entropy as a measure of operational flexibility," European Journal of Operational Research, Elsevier, vol. 165(3), pages 696-707, September.
    5. Petrovic, Dobrila & Roy, Rajat & Petrovic, Radivoj, 1999. "Supply chain modelling using fuzzy sets," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 443-453, March.
    6. Jaroslava Smolová, 2009. "Analysis of metrics used for storage process evaluation," Acta Universitatis Bohemiae Meridionales, University of South Bohemia in Ceske Budejovice, vol. 12(3), pages 111-118.
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    More about this item

    Keywords

    Supply Chain; Fuzzy Sets; Fuzzy Measures; Fuzzy Entropy;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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