Models for Evaluating and Monitoring Supply Chain Network Efficiency

Firms invest significant time and effort in developing supply chain network design models. Given this, it is critical for companies to evaluate and assess the efficacy of such models by considering a variety of factors that are above and beyond cost.   In this context, we present a methodology that can be used to evaluate supply chain network design performance in a more holistic manner. We utilize a combination of efficiency based methods and statistical process control techniques to monitor network efficiency and assist in network redesign triggers. The clustering methods used in conjunction with our models can help management focus on efficiency improvement strategies and resource allocations.  We demonstrate the application of our models through data gathered from The Dow Chemical Company, which is a multi-national vertically integrated chemical corporation.