Six sigma for supply chains

Supply chain management aims to add value across the supply chain and customer service is a major strategic issue. Supply chains are complex and subject to variables of forecast, supply, process, and transportation which can lead to problems such as the bull whip effect, product lateness, damaged goods and stock outs. A key issue is how to monitor and control performance across the chain and meet customer’s needs. In this work an order fulfillment model using Design for six sigma, which focuses on customer requirements from design onset and fuzzy logic, which accounts for the variable supply chain environment, is presented. By applying the model in a case study, a representation of detailed activities of order fulfillment processes is demonstrated providing key internal and external performance indicators. A theoretical transfer function for predicting the performance of the perfect order incorporating fuzzy set theory provides a way of monitoring supply chain performance. This is an effective way to monitor and control order fulfillment variables, optimise the order fulfillment process, meet customer requirements and make incremental step towards supply chain integration.