Keywords: modified BrownGibson model, analytical hierarchicy process, AHP, supply chain management, SCM index, national development index, NDI, national economy, economic development, quality of life, economic conditions, risk, decision making, technology management
A strategic decision model for the justification of supply chain as a means to improve national development index
A country's economy can be justified by many economic means. In this paper, it is proposed that supply chain as a means to develop a national economy. The analysis is carried out with three alternatives: supply chain, quality of life and economic conditions. A Modified BrownGibson (MBG) model is proposed by considering objective (internal factors (IF) affecting supply chain), subjective (external factors affecting supply chain) and Risk Factors (RFs) (risk associated with supply chain). In this strategic decision-making model, the objective factors are measured from the indices of the best indicators of the world economy. The Subjective Factor (SF) measure is performed using the rating approach of the Analytical Hierarchical Process (AHP). A detailed sensitivity analysis is carried out by changing the objective factor decision weight, the priority weight of SFs and also by changing the Gain Factors (GFs). The result of the analysis shows that there is a strong correlation between the National Development Index (NDI) and Supply Chain Management Index (SCMI). The analysis emphasises the need of enhancing the present supply chain network, quality of life and economic factors in order to improve the national economy.