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Supply chain management (SCM) has gained a tremendous amount of attention from both industries and researchers since the last decade. Until now, there are numerous papers, articles, and reports that address SCM, but there is still a lack of integration between the existing performance measurement methods and practical requirements for the SCM. An innovative performance measurement method is proposed to provide necessary assistance for performance improvement in SCM. The proposed method will address this purpose in these four aspects: a simplified supply chain model; tangible and intangible performance measures in multiple dimensions; a cross-organizational performance measurement; and fuzzy set theory and weighted average method.

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Because of the pressure of globalization in the last two decades, outsourcing activities has become an important strategic decision so that supplier selection is a prime concern. In fact, the selection problem is more crucial for the manufacturers of sophisticated semiconductor assembly equipments, as it is a multi-item, multi-person and multi-criterion decision problem. Among the reported literature, the analytic hierarchy process (AHP) has been recognized as an appropriate tool to tackle the said problem. In this paper, a case study is reported to illustrate an innovative model which adopts AHP and quality management system principles in the development of the supplier selection model. The proposed model can provide not only a framework for the organization to select supplier but also capability to deploy the company strategy to suppliers. Added to this, it also has flexibility to respond to the changing needs of the organization due to dynamic business environment. Through an illustration of the proposed model, it is found that the supplier selection problem can be solved in a structural and timely manner.

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