A multi-objective approach to design strategic supply chains and develop responsiveness- efficiency frontiers

Purpose: The purpose of this paper is twofold. Initially, a multi-objective binary integer programming model is proposed for designing an appropriate supply chain that takes into consideration both responsiveness and efficiency. Then, a responsiveness-cost efficient frontier is generated for the supply chain design that can help organizations find the right balance between responsiveness and efficiency, and hence achieve a strategic fit between organizational strategy and supply chain capabilities. Design/methodology/approach: The proposed SC design model used both cross-functional and logistical SC drivers to build a binary integer programming model. To this end, various alternative solutions that correspond to different SC design portfolios were generated and a responsiveness-cost efficient frontier was constructed. Findings: Various alternative solutions that correspond to different SC designs were generated and a responsiveness-cost efficient frontier was constructed to help the decision makers to design SC portfolios to achieve a strategic fit between organizational strategy and SC capabilities. Practical implications: The proposed methodology enables the decision makers to incorporate both qualitative and quantitative judgements in SC design. The methodology is easy to use and it can be readily implemented by a software. Originality/value: The proposed methodology allows for subjective value judgements of the decision makers to be considered in SC design and the efficiency-responsiveness frontier generated by the methodology provides a trade-off to be used when choosing between speed and cost efficiency in SC design.