![]() ![]() In this chapter, we consider following SC functions as mentioned in Figure 1.Īn organization’s strategic, tactical and operational decision-making plays a vital role in ensuring that its SC is operating efficiently, allowing it to achieve the highest levels of customer satisfaction at an optimum cost. SCM includes all the components of traditional logistics, but also tags on actions such as new product development, finance, marketing and customer service. In addition, traditional logistics emphasizes SC functions, including purchasing, distribution and inventory management. Traditional logistics consists of actions that usually occur inside single organization boundaries, while SCM essentially defines a network of different companies working in coordination, with their main goal being to deliver finished products to customers. Ĭertain differences exist between SCM and traditional logistics. On the other hand, traditional SC can be defined as a network which consists of suppliers, manufacturing facilities, distribution centers from which we procure raw materials, converted into finished good and deliver it to end user. SCM involves managing a series of activities relating to the planning, coordination and control of the movement of materials, parts and products from suppliers the management of inventories of procured parts and of issues relating to production an appropriate and cost-effective storage of products, and finally, transportation to the customer.Īnother approach defines SCM in terms of different decision-making (DM) levels, namely, strategic, tactical and operational, and indicates that these DM levels of all scales optimize SC performance. “A set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requirements.” If a company is buying raw materials for use in manufacturing a product, which it then sells to customers that mean the organization has an SC, which it must then manage. To that end, they must carry out investigations to isolate inefficiencies in their supply chain (SC) processes. Companies are facing challenges in discovering ways to fulfill ever-rising customer expectations and remain competitive in the market while keeping costs manageable. Supply chain management (SCM) is crucial in today’s competitive environment and is steadily gaining serious research attention. This chapter is useful for academic researchers, decision makers and experts to whom it will provide a better understanding of the application of MCDM methods in SCM, at various levels of the decision-making process, and establish guidelines for selecting an appropriate MCDM method for managing SC activities. A total of 140 published articles (from 2005 to 2017) were studied and categorized, and gaps in the literature were identified. This chapter considers major SC activities such as supplier selection, manufacturing, warehousing and logistics. The aim of this chapter is to conduct a systematic literature review of published articles in the application of MCDM methods in SCM decisions at the strategic, tactical and operational levels. For their part, MCDM methods have also attracted significant attention among researchers and practitioners in the field of SCM. Often, these criteria are conflicting in nature. SCM is a multi-criteria decision-making (MCDM) problem because throughout its process, different criteria related to each supply chain (SC) activity and their associated sub-criteria must be considered. Over the last decade, a large number of research papers, certified courses, professional development programs and scientific conferences have addressed supply chain management (SCM), thereby attesting to its significance and importance. ![]()
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