Evaluating and monitoring distribution network efficiency with multivariate process control methods

Abstract

In this paper, we present a methodology, by utilising a nonparametric multivariate cumulative sum control chart and data envelopment analysis in tandem, to evaluate and monitor distribution network performance by simultaneously considering multiple performance factors and their interrelationships. While these methods were previously applied individually, we demonstrate that their combined use can provide more powerful results in performance assessment, monitoring and improvement. Our approach contributes to the domain of supply chain analytics and risk management as it can provide new insights into network performance based on real time and past data. We present the application of our approach on data obtained from The Dow Chemical Company.