Modelling supply chain network: a quality‐oriented approach

Purpose – Successful supply chain (SC) design outlines a process for selecting compatible and competent partners and details their interrelationship at different nodes located in different echelons of the order fulfilment process. This paper aims to propose a quality‐oriented approach to such design that encourages all partners to grow in the business process. Design/methodology/approach – The design approach features a central node, formed by competent business process operators or lead firms to coordinate SC functions between customers and suppliers. This co‐ordination includes functions like monitoring quality, quantity and cost figures on the supply‐partner side, while overseeing the order fulfilment process on the receiving‐partner‐retailer side. The result is ensured dispatching, distribution and delivery of the right product at the right time. A mathematical model is proposed to aid the co‐ordination and decision‐making process and numerical examples illustrate the applicability of the proposed model and its approach. Findings – Placing a quality‐oriented co‐ordination process between the supply and receiving partners by following the proposed approach and mathematical model supports the development of an effective SC network that maximizes profit. Research limitations/implications – The proposed approach and mathematical model may be investigated further in the future with real world data from practical SC networks. Originality/value – The paper's research improves the SC process by introducing a new SC network design that includes mathematical models for business planners to use in their co‐ordination of SC partners.