Optimizing order fulfillment using design for six sigma and fuzzy logic∗

Supply chain management aims to add value across the supply chain and customer service is now a major strategic issue. Supply chains are complex and subject to variables of forecast, supply, process, and transportation which can lead to problems such as the bull whip effect, product lateness, damaged goods and stock outs. A key issue facing companies today is how to monitor and control performance across the chain. This paper presents Design for Six Sigma (DFSS), which focuses on customer requirements from the onset, as an effective methodology for monitoring and controlling supply chain variables, optimizing supply chain processes and meeting customer’s requirements. By applying DFSS methodology to the key supply chain process of order fulfillment, a customized representation of detailed activities of order fulfillment processes is demonstrated providing key performance indicators. A theoretical transfer function for predicting the performance of the perfect order incorporating fuzzy set theory provides a way of monitoring supply chain performance.