Order penetration point-based supply chain performance optimisation for SMEs (OPPO)

Abstract

This paper aims to develop order penetration point-based supply chain performance optimisation for SMEs (OPPO). OPPO supports identifying critical performance measures and their root-causes, figuring out their intricate interrelations, and optimising their conflicts in consideration of their relative preferences. It provides the best-fitted solution for Pareto-optimal results. The OPPO development covered nine performance measures which were causally linked for identifying a few of critical performance measures and their root-causes. Their conflicts in consideration of their relative preferences were optimised using weighted max-min fuzzy goal programming (WMM-FGP) for providing Pareto optimality. As a result, supply chain cost and customer lead time were identified as critical performance measures. Their Pareto optimality in consideration of their relative preferences suggests the best-fitted product lot-size and position of order penetration point (OPP).