ISSN 2736-1721
Global Journal of Business Management ISSN 6731-4538 Vol. 9 (2), pp. 001-013, February, 2015. © International Scholars Journals
Full Length Research Paper
Development of an approach to coordinate the objectives for members of a supply chain
Ming-Hon Hwang* and Yung-Fu Huang
Department of Marketing and Logistics Management, Chaoyang University of Technology, Taiwan.
Accepted 12 November, 2014
Abstract
Two important problems in a traditional supply chain are that the supply chain strategy is not fully integrated with a company’s competitive strategy, and that supply chain members have their own different objectives that may adversely affect the performance of the whole chain. A supply chain and its members need to develop a supply chain strategy that fits well with the competitive strategies of each member, as this will decrease conflict among them. In order to address these two issues, an optimized approach is proposed in this research. This approach not only integrates the supply chain and company strategies, but also coordinates the various objectives among members to maximize supply chain performance. It provides a calculation of the objectives of the entire supply chain and those of individual members, so that they can evaluate their objective setting and performance while executing different value-added operations. The proposed approach is illustrated with a numeric example of a typical supply chain and followed by a case study as evidence of its effectiveness.
Key words: Supply chain management, competitive strategy, supply chain strategy.