Difficult-to-measure integration measurement method for designing processes in a chain-like structure of conflicted cells in a supply chain

Abstract

The paper presents an approach for integrating conflicted cells in a chain-like structure based on a measurement of the level of integration of this structure. The authors’ prior experience suggests an assumption that conflicts always arise when cells are connected by a flow of materials, information, and money, although at different intensity levels. Usually, the intensity levels of said conflicts depend on the cooperation culture within a supply chain. This is a highly multidi-mensional problem, reflected by the literature referred to in this paper and related to this subject matter. The proposed approach treats technological processes between conflicted cells as an area of potential integration of these cells. Then, the integration becomes a problem of selecting the appropriate variant of realizing a technological process conducted in an area common for potentially conflicted cells of a company. The same approach may be used for cells belonging to separate production and distribution companies operating within a mutual supply chain. The paper proposes a method for measuring the integration level of neighboring cells, as a difficult-to-measure feature, by deter-mining an integration loss index. Also, the paper presents a multi-criteria method based on the fuzzy set theory for selecting a preferred variant of a technological process. A presented example uses this method in a supply chain to maximize the integration level between Shipping and Recipient cells/links. It has been assumed that the preferred realization variant of the flow process will be based on the following criteria: 1) shipping cost; 2) shipping quality; 3) shipping time. Also, an algorithm is shown for applying the presented methodology, which is helpful for managers interested in increasing the integration level of a supply chain. The methodology allows for increasing the integrity of conflicted cells both in newly designed supply chains as well as in existing ones when remodeled or reorganized. Moreover, the paper indicates some problems associated with the efficient implementation of the proposed method.