Activity-based divergent supply chain planning for competitive advantage in the risky global environment: A DEMATEL-ANP fuzzy goal programming approach

Supply chain management allows modern enterprises to relax their own capacities and produce in a more flexible manner for diversified consumer demands. However, for an enterprise with divergent supply chain (DSC) and multiple product lines, to plan the production allocation for higher competitive advantage in the risky global market is a challenging problem. The existing literature still has not address this problem very well. This paper is aimed to treat this problem by using an integrated approach of activity based costing (ABC) and management, five forces analysis, risk and value-at-risk analysis, decision making trial and evaluation laboratory (DEMATEL), analytic network process (ANP), and fuzzy goal programming (FGP). The proposed model can effectively incorporate the key factors of precise costing, managerial constraints, competitive advantage analysis, and risk management into DSC forecasting and multi-objective production planning. A case study of a consumer-oriented cell phone DSC is also presented. The sensitivity analysis shows that identifying and relaxing crucial constraints can play an important role in DSC planning for higher competitive advantage and lower risk.

Research highlights
► Using an approach of ABC, five forces analysis, VaR analysis, DEMATEL, ANP, and FGP.
► Incorporating the key factors into DSC forecasting and multi-objective production planning.
► A case study of a consumer-oriented cell phone DSC is also presented.
► The sensitivity analysis shows that identifying and relaxing crucial constraints can play an important role.