Track: Modeling and Simulation

Abstract

The critical role of supply chain management for the well-being of communities all around the world has been highlighted as a result of a multitude of disruptions, including natural or man-made disasters, pandemics, and geopolitical uncertainties, in recent years. Supply Chain Management (SCM) coordinates the flow of material, information, and services across functions and across companies. Supply chain disruptions have become more frequent, and the external and internal risks on supply chains should be considered more seriously to prepare for such shocks better. Supplier performance measurement is one of the most crucial processes to identify risks by quantifying the efficiency and effectiveness of supplier actions. In this study, the performances of three critical suppliers of a footwear retail company are statistically analyzed to identify the risks and to propose actions for improvement. Normality tests are applied to the supplier data to determine the appropriate hypothesis testing procedures. Due to the lack of normality in the data, Kruskal-Wallis test is performed to compare the performances of the three suppliers in terms of order delivery delay time measured in days and the number of split deliveries. The statistical analysis reveals important risks regarding over-reliance on suppliers with low service performance levels.