Performance monitoring under supply and demand disruption : a fuzzy-based decision support model

Performance monitoring is an integral part of broader supply chain management and aims to provide real-time performance for decision making under dynamic conditions. Among many performance measures in supply chain management, on-time delivery is a key measure that is being considered for continuous improvements in recent times. The paper presents a Fuzzy-based decision support model that can monitor on-time delivery using various inputs under supply and demand disruption phenomena. The model is based on an integrated framework of Fuzzy system and integrated processes/network connected through Fuzzy-system reasoning. It is then validated using numerical simulation, based on a single case study of dairy industry. The result shows that model can be used to monitor on-time delivery using variation of demand (forecast and actual), based on main inputs: capacity utilization (influenced by production disruption), raw materials shortage, and quality of dairy products. Based on a simple and cost effective approach, the proposed model minimizes the total cost of production, materials shortage, and delivery. Finally, the importance of real-time performance monitoring is recognized for supply chain management in responding to uncertainties inherited in the operational environment