A Mathematical Approach to Supply Complexity Management Efficiency Evaluation for Supply Chain

Abstract EN

This study aims to identify the factors of complexity due to the globalization of supply chain and to measure the management efficiency of the factors which cause the supply complexity within supply chain.

This study conducts an analysis to utilize linear programming and bootstrapping, targeting 12 Korean companies among the selected companies in Fortune Global 500.

According to the results from the analysis, 4 companies with relatively high management efficiency of the factors which cause the supply complexity and 8 companies with relatively low management efficiency are found.

The research findings reveal that public companies with the small number of products, factories, and providers relatively manage the supply complexity compared to private companies.

Moreover, this study suggests projection point as a direction for relatively less efficient companies and excess quantity of input which should reduce for its achievement.

This study also has an implication to establish a further standard of efficiency to manage the supply complexity for companies.