Supply-chain performance-measurement system management using neighbourhood rough sets

Performance measurements are central to improving organisational competitiveness. Organisations and researchers have developed and investigated various performance-measurement systems to manage and improve internal and external operations for logistics and supply chains. Yet, formal modelling tools and approaches for organisations to help evaluate the relationships between the performance measures and the desired competitive outcomes are limited, especially in logistics and supply-chain management functions. To help address this gap, we introduce a novel application of neighbourhood rough-set theory for the identification and selection of performance measures related to externally derived desired outcomes on the sourcing function. Our contribution includes introducing an innovative neighbourhood rough-set approach using elements of the Supply-Chain Operations Reference model. The model may aid in determining a core set of external logistics and supply-chain performance measures to internal performance expectations and outcomes. Implications and results interpretation of the methodology, sensitivity analysis, limitations, and future research directions conclude the paper.