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

Volume 5 No.
6, June 2015 ISSN 2223-4985
International Journal of Information and Communication Technology Research
©2015 ICT Journal. All rights reserved
http://www.esjournals.org
Application of Fuzzy Logic in Qualitative Performance Measurement of

Supply Chain Management
Amina S. Omar, Mwangi Waweru, Richard Rimiru
Jomo Kenyatta University of Agriculture and Technology, Mombasa Campus,
Institute of Computer Science and Information Technology,
P. O. Box 94090–80107, Mombasa, Kenya,
ABSTRACT
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.
Keywords: Supply Chain, Performance Measurement, qualitative measures and fuzzy logic
1. INTRODUCTION Due to growing availability of qualitative information

for performance measurement is more practical and
Over the past decade, there has been an increasing easy to measure supply chain performance in linguistic
emphasis on Supply Chain Management as a vehicle terms, including vagueness concept [2]. Qualitative
through which firms can achieve competitive advantage metrics do not possess quantitative values and cannot be
on markets [31]. Nomesh, Pranav and Jalaj [1], state, it measured by numerical numbers. In that case, linguistic
is not actually individual companies that compete with terms are used to evaluate performance of qualitative
each other nowadays; rather the competition is between metrics [2]. Fuzzy logic controller is useful when the
rival supply chains. The performance measurement problem is too complex to be solved with quantitative
process has evolved since the mid-eighties. Performance approaches [3]. Conventional measures (such as: profit,
measures provide the necessary feedback for percentage of products delivered on time etc.) had the
management which assists in business decisions [2]. drawbacks of tending to measure financial metrics, and
Models in the past have only explored limited failed to include intangible and lagging indicators [4].
dimensions of supply chain performance such as cost Fuzzy is an appropriate modeling method to deal with
[16], and flexibility [15]. Many performance measures intangible and qualitative measures which uses fuzzy set
have been identified as appropriate for supply chain theory and linguistic values and has been applied widely
analysis, but have not yet been used in supply chain in various areas of Supply Chain Management [2].
modeling research, although these measures may be
important characteristics of a supply chain, their use in Fuzzy logic is a problem solving methodology that
supply chain models is challenging, since the qualitative provides a simple way of definite conclusions from
nature of such measures makes them difficult to vague and imprecise information. Fuzzy set theory was
incorporate into quantitative models [1]. first introduced by Zadeh in 1965. He was motivated by
observing that human reasoning can utilize concepts and
Volume 5 No. 6, June 2015 ISSN 2223-4985
knowledge that don’t have well-defined boundaries [5]. subjective views of the expected behavior of the
Fuzzy set theory is a generalization of the ordinary set systems in those circumstances. In the field of
theory. A useful approach for examining many real- performance measurement, inevitability of subjectivity
world problems is fuzzy approximate reasoning or fuzzy has to an extent been accepted. They recognized that
logic. This technique is based on the fuzzy set theory [6] elimination of judgmental criteria and their associated
that allows the elements of a set to have varying degrees subjectivity are unlikely. This suggests that many
of membership, from a non-membership grade of 0 to a performance evaluation factors are subjective, and
full membership of 100 per cent or grade 1. This smooth hence qualitative in nature.
gradation of values is what makes fuzzy logic match
well with the vagueness and uncertainty typical of many According to [7] SC performance measures are
real world problems. Fuzzy is an appropriate modeling categorized in three main types; Resource, Output and
method to deal with intangible and qualitative measures Flexibility and declared that output measures include
which uses fuzzy set theory and linguistic values and customer responsiveness, quality and quantity of the
has been applied widely in various areas of Supply final product produced. Some of the output measures
Chain Management [2]. can be measured numerically such as number of items
produced but some of them such as customer
In dealing with many aspects of our daily life we satisfaction, responsiveness and product quality cannot
recognize that many phenomena, situations and issues be measured numerically.
are imprecise. We use words such as high, low, In his new classification, [7] introduced performance
moderate, adequate, extremely, large, tall, adult, mature, measures of SCM. They divided all the metrics into
competent etc. to deal with problems ranging from law, quantitative and qualitative and then established sub
financial management, engines, to psychology and factors for each category. Qualitative category is
education. Yet such expressions are incompatible with divided into quality, flexibility, visibility, trust and
traditional quantitative modeling and information innovativeness [7]. They claimed that quality factor of
system design which generally require an either a yes or the mentioned criteria have a full picture of the
no response to a question. However it is only making a mentioned criteria which should be interpreted in the
small step to argue Degree of membership that if we can SCM qualitative performance. Quality is categorized
‘reason’ using such imprecise information, so should into customer satisfaction, customer response time, lead
our machines [30]. It is often difficult to quantify time, on time delivery, fill rate, stock-out probability
performance dimensions because all critical parameters and accuracy.
in a Supply Chain Management are indicated
subjectively by linguistic terms and are characterized by Another performance measurement classification of
ambiguity [12] .Fuzzy set theory is primarily concerned agri-food was presented by [7] which include efficiency,
with quantifying and reasoning using natural language flexibility, responsiveness, and food quality.
in which many words have ambiguous meanings. Responsiveness classified in fill rate, product lateness,
customer response time, lead time, customer
2. THEORETICAL LITERATURE complaints, shipping errors. Supply Chain Operations
Reference (SCOR) model presented the following five
REVIEW attributes of Supply Chain performance [8].
2.1 Qualitative Performance Measurement 1. SC Reliability. The performance of the SC in

of Supply Chain Management delivering the correct product to the correct place,
at the correct time, in the correct condition and
Performance measurement is the process of using a tool packaging, in the correct quantity, with the correct
or a procedure to evaluate a concrete efficiency documentation, to the correct customer which is
parameter of the system The traditional performance Perfect Order Fulfillment. Reliability is a
measurement systems evaluate quantitative indicators customer-focused attribute.
directly related to production parameters: throughput,
number of delayed orders, WIP, manufacturing lead 2. Supply Chain responsiveness: The speed at which a
time, etc. The problem is how to evaluate the Supply Chain provides products to the customer.
performance of the systems in the presence of Responsiveness classified in fill rate, product
unexpected changes. Here, performance indicators may lateness, customer response time, lead time,
be of a qualitative nature, since they usually reflect customer complaints, shipping errors [7].
2.2 Fuzzy Logic

3. Supply Chain flexibility: The ability to respond to
marketplace changes to gain or maintain Fuzzy logic has become an important tool for number of
competitive advantage. Flexibility is presented into different applications ranging from the control of
4 categories: volume flexibility, delivery flexibility, engineering system to artificial intelligence. Practical
mix flexibility and new product flexibility [22]. applications of fuzzy logic pose a unique set of problems.
Flexibility was considered to be a qualitative factor The design of systems, which apply fuzzy logic to make use
[7]. of human knowledge and experience, is a daunting task
without facing engineering problems of real world systems.
4. Supply Chain costs: The costs associated with Fuzzy logic is a set of mathematical principles for
operating the SC. Cost is one of the quantitative knowledge representation based on degrees of membership
measures [7] and it can be measured by [9].
distribution cost, manufacturing cost, inventory
cost, warehouse cost, incentive cost and subsidy, Fuzzy logic is a form of many-valued logic; it deals with
intangible cost, overhead cost and sensitivity to reasoning that is approximate rather than fixed and exact.
long-term cost. All these are quantitative measures. Compared to traditional binary sets (where variables may
take on true or false values), fuzzy logic variables may have
5. SC asset management: The ability to efficiently a truth value that ranges in degree between 0 and 1. Fuzzy
utilize assets. Metrics include: inventory days of logic has been extended to handle the concept of partial
supply and capacity utilization which is a truth, where the truth value may range between completely
quantitative measure. true and completely false [11]. When linguistic variables are
used, these degrees may be managed by specific functions.
Fuzzy logics provide the basis for logical systems dealing
with vagueness, e.g. for formalizing common natural
language predicates such as “tall” or “fast”.
Rate of customer
complaints Design choices in this framework are made as to which real
Customer Response time numbers to take as truth values, and which properties
connectives should have. In fact logics based on real
numbers occur in a number of areas in logic. Fuzzy logic is
Lead Time
based on the theory of fuzzy sets, which a generalization of
On time Delivery Qualitative the classical is set theory. Saying that the theory of fuzzy
Performance sets is a generalization of the classical set theory means that
Fill Rate the latter is a special case of fuzzy sets theory. To make a
Measurement metaphor in set theory speaking, the classical set theory is a
Accuracy of Supply subset of the theory of fuzzy sets.
Chain
Shipping Errors A fuzzy set is a set without a crisp, not clearly defined
Management
boundary. It can contain elements with a partial degree of
Percentage of out of stock, membership with multi-valued logic. Fuzzification
Perfect Order fulfillment comprises the process of transforming discrete values into
grades of membership (continuous) for linguistic terms of
fuzzy sets. The membership function is used to associate a
Fig 2.1: Conceptual Framework for Qualitative grade to each linguistic term. Defuzzify evaluate several
supply chain performance measurement: membership sets established by the system designer for a
fuzzy logic based control system, such as "speed too fast,"
Models in the past have only explored limited dimensions of "speed too slow" and "speed about right" at a specific input
supply chain performance such as cost[16], and value. A Fuzzy Logic System consists of four main parts:
flexibility[15]. Hence this research aims to fill the gap by fuzzier, rules, inference engine, and defuzzifier [21]. These
studying the other two aspects of qualitative supply chains. components and the general architecture of a Fuzzy Logic
Which are reliability and responsiveness. System is shown in Figure 2.2.
The performance measurement process has evolved since the

mid-eighties. Performance measures provide the necessary
feedback for management which assists in business
decisions [2]. Models in the past have only explored limited
dimensions of supply chain performance such as cost [16],
Rules and flexibility [15]. Many performance measures have been
identified as appropriate for supply chain analysis, but have
not yet been used in supply chain modeling research,
Crisp Fuzzifier Inference Defuzzifie Crisp although these measures may be important characteristics of
Inputs r Output a supply chain, their use in supply chain models is
challenging, since the qualitative nature of such measures
Fuzzy input Set Fuzzy Output Set makes them difficult to incorporate into quantitative models
[1].
It is often difficult to quantify performance dimensions

Figure 2.2 Fuzzy Logic System because all critical parameters in a Supply Chain
Management are indicated subjectively by linguistic terms
The process of fuzzy logic involves obtaining a crisp set of and are characterized by ambiguity [12] .Fuzzy set theory is
input data are gathered and converted to a fuzzy set using primarily concerned with quantifying and reasoning using
fuzzy linguistic variables, fuzzy linguistic terms and natural language in which many words have ambiguous
membership functions [21]. This step is known as meanings. Supply chain performance extent can be
fuzzication. Afterwards, an inference is made based on a set attributed as a function of multiple criteria/attributes. Most
of rules and lastly, the resulting fuzzy output is mapped to a of the criterions/attributes being intangible in nature; supply
crisp output using the membership functions, in the chain performance appraisement relies on the subjective
defuzzication step [21]. judgment of the decision-makers [1]. Moreover, quantitative
appraisement of supply chain performance appears very
2.3 Role of Fuzzy Logic in Qualitative Performance difficult due to involvement of ill defined (vague)
Evaluation of Supply Chain Management. performance measures as well as metrics [1].
Conventional evaluation systems are representatives of A feature typical of the natural language, to be in no way
structured systems that employ quantifiable and non- circumvented, is the vagueness of its semantics. That is why
quantifiable measures of evaluation. It is often difficult to a description delivered in the natural language cannot be
quantify performance dimensions. For example, translated directly into mathematical formulas [17]. To be
“responsiveness” may be an important part of evaluating able to apply the classical mathematics, we have to have the
performance of supply chains. However, how exactly does task described in precise figures. This method, however, can
one measure “responsiveness”. Fuzzy approach can be return unsatisfactory results, as precise figures often do not
effectively utilized to handle imprecision and uncertainty properly reflect the reality. Fuzzy logic offers a solution to
[15]. This approach to performance evaluation allows the the problem, since it allows us to model the meanings of
organization to exercise professional judgment in evaluating words used in the natural language [18].
its supply chains. In real problems, performance evaluation
techniques engage in handling cases like subjectivity, Fuzzy logic is, however, not fuzzy. Basically, fuzzy logic is
fuzziness and imprecise information. a precise logic of imprecision and approximate reasoning
[17]. More specifically, fuzzy logic may be viewed as an
It is often difficult to quantify performance dimensions attempt at formalization/mechanization of two remarkable
because all critical parameters in a Supply Chain human capabilities. First, the capability to converse, reason
Management are indicated subjectively by linguistic terms and make rational decisions in an environment of
and are characterized by ambiguity [14] .Fuzzy set theory is imprecision, uncertainty, incompleteness of information,
primarily concerned with quantifying and reasoning using conflicting information, partiality of truth and partiality
natural language in which many words have ambiguous of possibility; in short, in an environment of imperfect
meanings. Application of the fuzzy set theory in evaluation information. And second, the capability to perform a wide
systems can improve evaluation results [2]. variety of physical and mental tasks without any
measurements and any computations [6].
Reality has almost always an aspect of randomness and an In his study, [19] developed a fuzzy expert system approach
aspect of vagueness. The mathematical apparatus of the to forward looking performance measurement system of
theory of fuzzy sets provides a natural basis for the theory delivery metric in two Thai textile companies. The
of possibility, playing a role which is similar to that of developed system enables managers to develop systematic
measure theory in relation to the theory of probability [6]. ways to predict future performance and identify potential
Vagueness can be modeled using the theory of fuzzy sets, problems in a company. Using the SCOR model delivery
while the randomness is modeled with reliance on the metric is only one of the factors of responsiveness and hence
probability theory and possibly other theories like the theory cannot be used to evaluate the complete supply chain
of possibility, different rates of veracity, etc. [18]. Viewed in performance management.
this perspective, a fuzzy restriction may be interpreted as a
possibility distribution, with its membership function In his study, [1] Presented innovative fuzzy logic process
playing the role of a possibility distribution function, and a based method for performance measurement in SCM. Their
fuzzy variable is associated with a possibility distribution in Qualitative category was divided into quality, flexibility,
much the same manner as a random variable is associated visibility, trust and innovativeness. This framework didn’t
with a probability distribution [6]. cover all the responsiveness and reliability factors which
according to the SCOR model are two of the parameters that
Fuzzy provides a remarkably simple way to draw definite can be used to measure supply chain performance.
conclusions from vague, ambiguous or imprecise
information. In a sense, fuzzy logic resembles human Fuzzy rules applied to define qualitative terms. [20]
decision making with its ability to work from approximate proposed a methodology for monitoring the SC network
data and find precise solutions. [29] set up the following with applying fuzzy logic for some reasons such as
steps which are necessary for successful application of accuracy, reliability, compactness and lack of the concept of
modeling through a general fuzzy system: Fuzzification of justification in rule-base system. This study focused on
the input and output variable by considering appropriate monitoring the supply chain network and not evaluating the
linguistic subsets, Construction of rules based on expert performance of supply chain management.
knowledge and/or the basis of available literature, The result
appears as a fuzzy subset and therefore, it is necessary to 3. METHODOLOGY
defuzzify the output and obtain a crisp output.
Qualitative performance measurement evaluation of Supply
2.4 Related Work Chain management for was done in five steps. Following the
process of methodology will be described.
While fuzzy logic techniques have earned their place in a
variety of field ranging from engineering to financial sector, The first step was designing the questionnaire for gathering
to medicine, few efforts have been made to test the potential true required information from various supply chains in
usefulness of these methods in the modeling supply Kenya. The information was used to construct the proposed
performance evaluation. This section discusses the literature framework of performance measurement in Supply Chain
survey about the past and current research application of Management. The answers contain the most interesting
fuzzy logic. criteria which were used as input variable of the framework.
Moreover, the questionnaire was designed in a way that it
In his study, [1] , proposed a Fuzzy logic framework for would help the researcher to define the correct membership
quality as one of the important factors of qualitative function and fuzzy rules based on the range of answers.
performance is discussed to be measured by means of fuzzy Therefore, role of the questionnaire in the research is to
logic controller in Malaysian rubber glove manufacturers. A obtain the robust data of the Supply Chain Management
suitable fuzzy inference mechanism and associated rule has which can be applied in the proposed Fuzzy Logic
been discussed. It introduces the principles behind fuzzy Framework.
logic and illustrates how these principles could be applied by
Supply chain managers to evaluate supply chain Questionnaire was designed in two sections. The first section
performance. This study only focused on one aspect of gathered general respondents information and information
qualitative performance measurement of supply chain on what extent do they measure qualitative aspects of
management. performance of supply chains based on the predetermined
factors. The second section gathered information on
responsiveness and reliability of supply chain performance.
The correct range of data for each criterion was gathered

through this questionnaire. Then, questionnaire was
distributed to eighty companies that have Supply Chains.
Fifty five companies answered questionnaire and their
responses entered in the FLC design module.
The next step in the methodology was to fuse two variables

at a time depending on their importance, in order to reduce
the rule base. Jamshidi [27] proposed to use sensory fusion
to reduce a rule base size. This method consists in
combining variables before providing them to input of the
fuzzy controller [25]. In this study the variables were fused
as shown. In the hierarchical fuzzy control structure from
[26], the first-level rules are those related to the most
Figure 3.1: Basic FIS Editor in Matlab showing accuracy and
important variables and are gathered to form the first-level number of complaints parameters fused linearly to produce
hierarchy. The second most important variables, along with Rep1 into a fuzzy model.
the outputs of the first-level, are chosen as inputs to the
second level hierarchy, and so on. For Supply Chain
Responsiveness, the first fusion will be between on time
delivery and response time. On time delivery measures the
percentage of all orders delivered by the requested delivery
date, as indicated in the PO/contract during a defined period
of time. Logistics managers can use this indicator to monitor
supplier response time on shipments over a specified period
of time [24].
The second fusion will be on lead time and probability out of

stock. Lead time is the time of a supply chain network to
respond to customer demands. Furthermore, in the worst
case lead time corresponds to the response time when there Figure 3.2: Basic FIS Editor in Matlab showing lead time
are zero inventories. This was used as a measure of and probability out of stock parameters fused linearly to
responsiveness in our previous work [23] produce Resp2 into a fuzzy model.
The third fusion was on Fill rate and shipment errors. This
indicator measures the ability of the supplier to fill POs
correctly. Shipments should always be checked against the
shipping notice and the PO. What was shipped may not be
what was ordered.
The fourth fusion will be between accuracy and number of

complaints. Accuracy and customer complaints are more
sensitive compare to fill rate and customer response time
because when the company cannot provide ordered products Figure 3.3: Basic FIS Editor in Matlab showing on time
accurately, it cause to the dissatisfaction and reduce output delivery and response time parameters fused linearly to
performance. Mentioned problem may not always cause to produce Resp3 into a fuzzy model.
the complaints because customers prefer to change the
company and provide the requirement from the competitors
[7]. This is shown in figure.3.1 to figure 3.7
For supply chain reliability which is perfect order

fulfillment.an order is perfect if only all the metrics are
perfect.[8]. The Perfect Order is an order delivered to a
customer that is “complete, accurate, on time and in perfect
condition” [24]. The first fusion was between correct time
and correct quantity. The second fusion will be on correct
condition and correct product delivery. This is shown in
Figure 3.8 to 3.10.
Figure 3.4: Basic FIS Editor in Matlab showing fill rate

and shipping errors parameters fused linearly to produce
Reps4 into a fuzzy model.
Figure 3.8: Basic FIS Editor in Matlab showing correct

product and correct condition parameters fused linearly
to produce Rel1 into a fuzzy model.
Figure 3.5: Basic FIS Editor in Matlab showing RESP1

and RESP2 outputs fused linearly to produce
RESPFUSIONONE into a fuzzy model.
Figure 3.9: Basic FIS Editor in Matlab showing Correct

time and correct quantity parameters fused linearly to
produce Rel2 into a fuzzy model.
Figure 3.6: Basic FIS Editor in Matlab showing RESP3

and RESP4 outputs fused linearly to produce
Respfusiontwo into a fuzzy model.
Figure 3.10: Basic FIS Editor in Matlab showing Rel1

and Rel2 parameters fused linearly to produce
Reliability into a fuzzy model.
The next step in the methodology was FLC design which

includes membership function design and fuzzy rules design.
Figure 3.7: Basic FIS Editor in Matlab showing In membership function design, factors divided into two
RESFUS1and REFUSION22 outputs fused linearly to groups; numerically and proportionally, according to the
produce RESPONSIVENESS into a fuzzy model. factors definitions. Using natural language, commonsense
linguistic labels and traditional crisp set values, the
numerical group will be measured as “high” or “low”. While covered range of data which are less than 1 day. Therefore,
the proportional group will be measured as “poor” and four alternatives cover four types of membership function.
“good”. A fuzzy set is an extension of a crisp set which Figure 3.12 shows the membership functions plots for the
allows partial membership. The permissiveness of fuzziness mentioned factors.
in the human thought process suggests that much of the logic
behind thought processing is not traditional two valued logic
or even multivalued logic, but logic with fuzzy truths.
Therefore a partial membership label “Medium” will be
added in the linguistic term set for the numerical group and
“Average “ for the proportional group of the performance
measurement variables.
Certain operators may be included to slightly change the

meaning of the linguistic labels involved in a specific
linguistic fuzzy rule. It a way to do so with a minor
description loss is to use linguistic hedges [17]. A linguistic
hedge (also known as linguistic modifier) is a function that
alters the membership function of the fuzzy set associated to
the linguistic label, obtaining a definition with a higher or
lower precision depending on the case. Two of the most
well-known modifiers are the concentration linguistic hedge
“very” and the dilation linguistic hedge “more-or-less.” and
their effects on a triangular membership function are shown
in Fig. 3.11
Figure 3.12: Responsiveness Membership Functions plots

in Performance Measurement of SCM
The rule base of the proposed Fuzzy Logic Framework was

defined in three steps; firstly, total numbers of interactions
between the input variables of the FLC were defined. The
Figure 3.11.Effects of the linguistic Hedges “very” and numbers of rules were established based on the permutation
“more-or-less” with number of membership function and numbers of
The linguistic terms will then be quantified on a numerical criteria. The numbers of factors are eight for responsiveness
scale based on inputted numerical data collected from and numbers of membership functions are eight. Using
various Supply Chain Management system and membership Hierarchical Fusion method, two variables were fused at a
functions will then be defined to determine their degree of time. The total amount of rules are 5^2 equal to 25 rules for
membership. The triangular membership function shape will every fusion. In second step, some illogical relationships
be chosen because it is most popular in the performance between the rules found and were omitted from the rule
measurement [3]. The above linguistic variables and terms base. These rules showed states that had illogical interaction
will then be matched and fuzzy rules generated, and between two or more criteria. For example if the “accuracy”
expressed in a fuzzy associative matrix and output results variable be “high” or “very high” then the “response time”
obtained for each parameter which will then be aggregated would not be “very low” or “low”. It’s because when the
into one crisp value using a defuzification technique. speed of production is not short enough, the company cannot
response to the order of customer before due date. Finally, in
Range of the membership function depended on the last fuzzy rule design step, remaining
alternatives that were designed for each criterion in the rules were contracted in 104 general rules and the output for
questionnaire. For instance alternatives which were designed each rule was determined by the researcher.
for lead time has four alternatives; less than 1 day, 1 to 3
day, 3 days , 3 to 5 days and more than 5 days. First The contraction was done for better decision making for
alternative in triangular membership function should be each output state and easy understanding for find out the
relationships between the factors. In the last step of the 60-30

methodology, the fuzzy logic toolbox of MATLAB was Similarly if the value is greater than 30 and less than 45,
applied to entering the membership functions and fuzzy then this value lies between both high and average thus the
rules. Furthermore, the software helped to show the result degree of membership shows to what extent the input
and analyze the output performance of supply chains. The presents a value represented by a the specified fuzzy set. E.g.
following section shows the result of the research and 34 lie more on the average side. Then the degree of
discuss about the output analysis in the qualitative membership can be calculated using Eq.(2) as
performance measurement in Supply Chain Management.
Fig. 3.13 shows sample fuzzy rules and Fig. 3.15 shows an F=60-34 =0.866
output membership function for responsiveness and
reliability. 60-30
This implies it has a degree of 0.87 average and 0.13 high.
So this will be considered as average. For percentage of
orders delivered on time, e.g. if 67% of them are delivered
on time. This lies between average and good but more on the
good side, then the degree of membership will be calculated
using .Eq. (2) as
F=100-67 =0.74
100-50
0.74 good and 0.26 average, so this will be considered as

good. After obtaining the degree of membership for each
input variable. The fuzzy rules that match the inputs degree
of membership are fired and the output is mapped into the
output membership functions shown in Fig.3.15
Figure 3.13: Sample Fuzzy Rules
The triangular membership function shown in Equation (2)

is then used in MATLAB to obtain the degree of fuzziness
for each input variable.
(1)
(Retrieved from http://www.academia.edu/5542014/Fuzzy

_Logic)
For instance if number of complaints are 40 in a specified

time period, 40 has an intersection between average and high
then membership degree can be calculated using Eq.(2) as
(2)
F=60-40 =0.67
Reliability Correct Correct Time Correct Correct Table 4.1: Supply Chain Reliability data
Measurement Product Quantity documen
Parameters Delivery tation
Mean 4.2 4 4.12 4.2

Inputs into the model were based on the data shown on
Table 4.1 and Table 4.2 respectively. The output is shown
in figure 4.1 .Responsiveness was found to be 75% which is
Figure 3.15: Output Membership functions for
a fusion between Resfus1 and Resfus2 for supply chains in
Responsiveness and Reliability
Kenya, which is both on the good and very good side, using
the triangular membership function (Eq. 8) the degree of
4. RESULT AND DISCUSSION membership is calculated as 100-75/100-50=0.5. this
indicates that responsiveness is very good .Further input of
The result of the research is categorized into; making a reliability data also indicated that supply chain reliability in
framework with using the FLC for performance Kenya was found to be 75%. The final output is shown in
measurement of Supply Chain Management in Kenya and the figure 4.1.
test the framework on three manufacturers for illustration of
the result and analysis of the output. The framework was
created to introduce new approach for measuring qualitative
performance in SCM. The FLC was used as an inference
system because it is a robust and easy understanding
approach for using linguistic terms into logical rules. For
showing the performance of the Responsivess and
Reliability factors in supply chains in Kenya, Table 4.1 and
Table 4.2 shows the achieved mean data from all the
companies that responded. The data inserted in the software
and the output show the result of the performance.
Table 4.1: Supply Chain Responsiveness data
Responsiveness Parameters Mean

Lead time(in days) 2.12
Customer response time: (in days) 3.18
Number of customer complaints: 1.2 Figure 4.1: Supply Chain overall performance
(in numbers)
5. CONCLUSION
on time delivery: 3.27
This study has addressed the questions of how to measure
Fill rate (%): 3
supply chain. Supply performance has become an important
avenue in recent times. Many organizations around the
Shipping errors (%): 2 world have been attempting to implement performance
concepts in their supply chain. The evaluation of supply
Percentage out of stock (%): 2.3 chain performance gains vital importance in modern
scenario. Performance in nature is associated with
complexity and ambiguity; therefore conventional
Accuracy (%): 4 evaluations are inappropriate and incompetent. However
fuzzy logic is a very powerful tool to compensate this
limitation and deal with vague and complex situations.
performance of any supply chain can be effectively
evaluated using fuzzy inference system. Exploration of Pacific Industrial Engineering and Management
fuzzy logic helps in dealing with decision-makers’ linguistic System. Malaysia.
evaluation information efficiently, thereby eliminating
ambiguity, imprecision and vagueness arising from
subjective human judgment. Also for any industries to be [8]. Supply Chain Council, Inc. (2010). Supply Chain
survive in today competitive market they should periodically Operations Reference (SCOR) mode. Overview -
evaluate their supply chain performance. Well performing Version 10.0.
supply chain result in improving the response and service to
the customer, therefore increasing the supply chain
profitability. [9]. Deepak K., Ramakrishna, H., & Jagadeesh, R.
(2011). Assessment of Supply Chain Agility Using
REFERENCES Fuzzy Logic For A Manufacturing Organization,
“International Journal Of Software Engineering
[1]. Nomesh, B., Pranav, S., & Jalaj, B. (2012) And Computing”, 3(1), 25-29.
.Quantification of agility of a Supply Chain using
Fuzzy Logic. American Journal of Engineering and
Applied Sciences: 2 (2), 100-106. [10]. Patidev, D., & Sohani, N. (2013). Green Supply
Chain Management: A Hierarchical Framework for
[2]. Ezutah, U.O., & Kuan, Y.W. (2010). Supply Chain Barriers. International Journal of Engineering
Performance Evaluation and Challenges. American Trends and Technology 4(5), 2172.
Journal of Engineering and Applied Sciences: 2 (1),
202-211.
[11]. Shruti, S. J., & Mudholkar, R.R. (2013).
International Journal of Soft Computing and
[3]. Shirouyehzad, H., Panjehfouladgaran, R, Engineering, 3(2), 306-320.
Badakhshian, M. (2011).Vendor performance
management using Fuzzy logic controller. The
[12]. Smolová, J., & Pech, M.( 2011). Dynamic Supply
Journal of Mathematics and Computer
chain modeling using a new fuzzy hybrid
Science,.2(12), 311-318.
negotiation mechanism," International Journal of
Production Economics, 59(1-3) ,443-453
[4]. Gunasekaran A., & Kobu B.(2007). Performance
measures and metrics in logistics and supply chain
[13]. Kaplan, R. S. & Norton, D. P. (1992). “The
management: A review of recent for research and
Balanced Scorecard - Measures that Drive
applications,. International Journal of Production
Performance,” Harvard Business Review, 70(2),
Research, 45(12), 2819–2840.
71-9.
[5]. Mehrdad, M., & Abbas N. A. (2011). Supplier

[14]. Sirigiri, P., & Gangadhar, P.V., & Kajal,
Performance Evaluation Based On Fuzzy Logic.
K.G.(2012). Evaluation of teacher’s performance
International Journal of Applied Science and
using Fuzzy Logic Techniques. International
Technology, 1(5), 257 -265.
Journal of Computer Trends and Technology, 3(2),
200-210
[6]. Zadeh, L.A.(1976). Fuzzy set as a basis for theory
of possibility. Fuzzy Sets Systems, 1(2), 3-28. DOI:
[15]. Sánchez, A., & M. Pérez, 2005: Supply Chain
10.1016/0165-0114(78)90029-5.
Flexibility and Firm Performance: A Conceptual
Model and Empirical Study in the Automotive
[7]. Hamidreza P., Rosnah Y., Tang S. H., & Seyed M. Industry. International Journal of Operations &
H. (2010, 12). Qualitative performance Production Management, 25, 7-8.
measurement of supply chain management using
fuzzy logic controller. Paper presented at 11th Asia
[16]. Pyke, D.F. & Cohen, M.A. (1994). Multi-product [24]. Measuring Supply Chain Performance Guide to
integrated production-distribution systems. Key Performance Indicators for Public Health
European Journal of Operational Research, 74: Managers(2010). Retrieved from
18-49 http://deliver.jsi.com/dlvr_content/resources/allpub
s/guidelines/MeasSCPerf.pdf
[17]. Zadeh, L.A.(1976). Fuzzy set as a basis for theory

of possibility. Fuzzy Sets Systems, 1(2), 3-28. DOI: [25]. Ledeneva, Y. (2006a). Automatic Estimation of
10.1016/0165-0114(78)90029-5 Parameters to Reduce Rule Base of Fuzzy Control
Complex Systems. Master thesis, INAOE Mexico.
[18]. Novak, V., Perfilieva, I., and Mockor, J. (2000),

Mathematical principles of fuzzy logic, Dordrecht: [26]. Ledeneva, Y., & Reyes García, C. A. (2006b).
Kluwer. Automatic Estimation of Fusion Method
Parameters to Reduce Rule Base of Fuzzy Control
Complex Systems. In: Gelbukh A.,et al. (Eds.):
[19]. Unahabhokha, C., Platts, K. and Hua Tan, K. MICAI 2006, Springer-Verlag Berlin Heidelberg,
(2007). Predictive performance measurement LNAI 4293, pp. 146-155. Ledeneva, Y.,
system: A fuzzy expert system approach.
Benchmarking: An International Journal, 14(1), [27]. Jamshidi, M. (1997). Fuzzy Control Systems.
77-79. Springer-Verlag, chapter of Soft Computing,
pp.42–56.
[20]. Huang, G.Q., Lau, J.S.K., & Mak, K.L. (2003).

The impact of sharing production information on [28]. Hoffman, D. (2002). “Supply Chain Excellence:
supply chain dynamics: A review of literature. All Roads Lead to The Perfect Order,” AMR
International Journal of Production. 41(7), 1483- Research Report Retrieved 01/15/06, from
1517. http://cdcsoftware.com/download/whitepaper/b6.pd
f
[21]. Fundamentals of Logic Concepts (2011). [29]. Marsili-Libelli, S., 2004. Fuzzy prediction of the
Retrieved from algal blooms in the Orbetellolagoon. Environmental
Http://ptgmedia.pearsoncmg.com/images/01357059 Modelling and Software 19, 799–808.
91/samplechapter/0135705991.pdf
[30]. Cox, E. (1994). The Fuzzy Systems Handbook: A

[22]. Beamon, B.M. (1999). Measuring Supply Chain Practitioner’s Guide to Building, Using and
Performance, International Journal of Operations Maintaining Fuzzy Systems. London: Academic
and Production Management, 19(3), 275-292 Press
[31]. Jugendra, D., Prajapati, G.L., & Tokekar,

[23]. Grossmann, I.E..(2005). “Enterprise-wide S.,V.(2012). Designing and Managing the Supply
Optimization: A New Frontier in Process systems Chain using Fuzzy Logic Approach. IJCA Special
Engineering”, AICHE Journal, 51, 1846-1857 Issue on Issues and Challenges in Networking,
Intelligence and Computing Technologies ICNICT
(5):4-7, Foundation of Computer Science: New
York, USA

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

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

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

Uploaded by

Copyright:

Available Formats

Volume 5 No.

6, June 2015 ISSN 2223-4985

International Journal of Information and Communication Technology Research

©2015 ICT Journal. All rights reserved