Evaluating the Effectiveness of Supply, Product, and Distribution Factors on the Organizational Performance by Using Structural Equation Modeling

Abstract

A supply chain includes all facilities, tasks, and activities that are involved in the production and delivery of a product or service from suppliers to customers. The supply chain management (SCM) coordinates all these activities so that the customers can obtain high quality products and reliable services in minimum costs. Supply chain management can, in turn, provide competitive advantage for the organization. Effective supply-chain management requires a comprehensive perspective of modules. In this paper, a multi-stage structure for a supply chain network that includes suppliers, distribution centers and related issues is being developed. The main feature of decision is based on the integration three basic steps of a tactical problems that involves from procurement of raw materials from suppliers to a finished production and final product distribution at the factories. In addition, two our main goals are to minimize overall supply-chain costs and also minimize the average time delay to distribution centers. The obtained mathematical model is a single-objective linear programming model. This paper focuses on integrating and minimizing the total cost in the supply chain logistics.