A Decision Framework for Supply Chain Planning in SMEs: A QFD-ISM-enabled ANP-GP Approach

S. G. Deshmukh Director, IIITM Gwalior, New Delhi, India [email protected] This article proposes a methodology for supply chain planning in small and medium enterprises (SMEs). The proposed framework integrates the use of selected well-proven techniques such as quality function deployment (QFD), interpretive structural modeling (ISM), analytic network process (ANP), and zero one goal programming (ZOGP) to incorporate conflicting supply chain objectives and interrelationships among various critical success factors to identify business requirements that enable supply chain planning in SMEs. The use of an integrated approach can benefit : a) QFD can help SMEs to opt for planning and translating business needs (internal or external) into measurable supply chain technical requirements. (2) ISM offers an opportunity to establish interrelationships between business needs and supply chain requirements. (3) The direct utility of ISM results in real-life decision making is complex. Complementary use of ISM and ANP improves the utility of findings. (4) ZOGP methodology incorporates goals such as cost, flexibility, lead time, inventory levels, and so on. It is expected that the proposed decision framework will help SME managers to improve the decision making used in managing their supply chain and will help SME firms to explain the basis of their decisions to other supply chain partners, specifically, OEM (original equipment manufacturer) organizations in which less bargaining power exists. This article provides an illustrative application of the proposed methodology as used by short blasting equipment manufacturer SMEs.