Demand Variability And Supply Disruptions In Decentralized Retail Centres In A Supply Chain Network

Abstract

The efficient management of the manufacturer–retail centre linkage in a supply chain network, is a multi-attribute decision making problem. It determines the market share and shapes the penetration of products into the market and retail centres. This demands that the customer strategic importance, cost, risk, e.t.c need to be harmonised. In this work a multi attribute decision model was used to determine the impacts of the retail centre risk in the form of demand variability or supply disruptions among other factors for a selected supply chain network that has eight retail centres.   The results of the demand variability of the eight retail centres are 1(0.44), 2(0.10), 3(0.88), 4(0.75), 5(0.56), 6(0.73), 7(0.25), 8(0.32), while the supply disruption are 1(0.35), 2(1.13), 3(1.13), 4(0.93), 5(0.93), 6(0.95), 7(0.35), 8(1.10) respectively. A sensitivity analysis of the decision criterion also showed the consequences of changes in the priority of the criteria and sub-criteria over the final decision. This helps the decision maker respond quickly and appropriately to changes in the fund management philosophy and competitive advantage position   Keywords: Decentralized retail centres, Demand variability and  Supply disruption