Information Feedback Approach for Maintaining Service Quality in Supply Chain Management

Abstract

Maintaining the service quality in a supply chain has become a challenging task with increased complexity and number of players down the line. Often several supply chains cross over the common resources, calling for the sharing of resources and prioritization. This leads to the definition of prespecified service quality as seen by the end user of the supply chain. In this chapter, a feedback mechanism that conveys the status of the supply line starting from the tail end is discussed. The advantages of using a predicted and shifted slippage or loss rate as the feedback signal are highlighted. Based on the feedback, the source is expected to change the rate of transfer of the commodity over the supply chain. With this, the resources would get utilized effectively, reducing the stranded time of the commodity down the line. The service quality in terms of delay and loss rate gets improved.