Application of Fuzzy Logic in Qualitative Performance Measurement of Supply Chain Management

Supply chain involves all activities of meeting customers demand and transferring material through downstream into upstream of chain for fulfilling the demands. To achieve supply chain objectives organizations should control the activities for increasing the efficiency and effectiveness. . In recent years many methodologies have been developed in terms of quantitative measures but most of them merely focus on the control mechanism based on reported measures whereas the qualitative aspect of the work is still unexplored. Fuzzy logic can be a powerful tool for managers to use instead of traditional mathematical models when evaluating the performance of supply chains. The flexibility of the model allows the decision maker to introduce vagueness, uncertainty, and subjectivity into the evaluation system. Performance evaluations represent a critically important decision that often involves subjective information. Fuzzy logic models provide a reasonable solution to these common decision situations. After extensive exploration of the literature, we recommend an outcome of exploring Fuzzy logic approach in evaluating qualitative aspects of performance of supply chain management. In this paper, responsiveness and reliability as some of the important factors of evaluating qualitative performance is discussed to be measured by means of fuzzy logic in Supply Chains Management.