A Decision Model For Strategic Alignment In Supply Networks: A Case From Apparel Industry

A Decision Model For Strategic Alignment In Supply Networks: A Case From Apparel Industry

Halimi, M.

Verbraeck, A. (mentor)
Duin, R.J. (mentor)
Kortmann, R. (mentor)

Technology, Policy and Management

Multi Actor Systems

Systems Engineering, Policy Analysis and Management (SEPAM)

2013-09-30

In today’s highly competitive market, it is very difficult for companies to stay successful in the market. While manufacturing methods have improved in last fifty years, competition is taking place at the level of whole supply chain rather than production only. Accordingly, the apparel industry which has long and complicated supply network needs more consideration. Based on literature, in the past two decades, a number of studies have been done in this industry. Operations strategy influences the whole supply network because of its effects on different aspects of the supply network such as production, labour, transport, and distribution. These four aspects account for most of supply chain costs. Companies follow particular business strategies to position themselves in the market. Business strategy is the primary driver of the company, which affects the whole supply network and consequently, the operations strategy. Subsequently, decision making on appropriate operations strategy helps the company to achieve its goal and its desired image in the market. The goal of this research is strategic alignment regarding the company’s supply network. In other words, the goal is to improve the decision making process of companies in apparel industry such that the right operations strategy can be selected based on their business strategy. To evaluate the supply network, three Key Performance Indicators (KPIs) are defined. The main KPIs in apparel industry are: lead time, fulfilment rate, and cost. The study is founded on exploring the literature, interviews with experts, defining a case, running a simulation model to generate data for decision analysis part, and finally, using a multiple criteria decision analysis method. The case provides one year of data for the research modelling from July 2011 to March 2012. As mentioned, the model includes two parts; simulation part and decision analysis part. The first part is simulation of the supply chain according to different operations strategies. In this part, four main aspects of the supply chain operation are considered: production, labour, transport, and distribution. The simulation results in different values for KPIs based on each set of operations strategy. Then, the second part is decision making on choosing the appropriate operations strategy based on defined KPIs generated by simulation model. This analysis is performed according to a quantitative Multiple Criteria Decision Analysis (MCDA) method. Finally, the whole modelling process of the study leads to aligning operations strategy of a company with its business strategy.

supply network
business strategy
operations strategy
decision support tool
apparel industry

http://resolver.tudelft.nl/uuid:bfd87d88-368f-4ff0-a69d-050dbd9f152f

Campus only

Student theses

master thesis

(c) 2013 Halimi, M.