Using A Max-Min Approach to Evaluate the Performance of A Supply Cluster Network

Abstract

With the increase in the number of studies on supply chain management practices and their application, many studies have proposed methodologies that can be used by manufacturers to evaluate vendors. These methodologies allow a buyer to choose several specific indicators or multiple criteria to evaluate vendors and distinguish them from one another based on their performance. Manufacturers can then make decisions on further cooperation with vendors who have high performance scores. Nevertheless, few studies have proposed methodologies that can be used to evaluate a supply cluster network, which consists of interlaced supply chains, as a whole. In this paper, we first apply a max-min approach and attempt to determine alternative supply chain permutations in a supply cluster network, in an effort to ascertain the preferred choice from among the supply chains in the network. We use the proposed methodology to maximize the buyer’s profits under several conditions set by the buyer, and list the performance sequence of each supply chain in the supply cluster network as a whole. The results of this process can be used as criteria for future reference. Finally, we put forward suggested solutions and analytical information, and make further suggestions in relation to each individual supply chain.