POLICY INTERVENTIONS FOR SUPPLY CHAIN PERFORMANCE THROUGH QUALITY AUDITING: THE CASE OF A PACKAGING COMPANY

Supply Chain Performance is a key factor for the success of any organization. In highly competitive world, companies are not competing one another it is their supply chains which compete. In this paper, System dynamics (SD) model is developed to find out the policy interventions for supply chain enhancement through quality auditing. Quality auditing is quality practice that is necessary element in quality certifications and quality programs for assessing the state of quality implementation and a yardstick to measure the supply chain performance within an organization. While identifying the dynamic variables associated with quality auditing and unveiling the underlying feedback structure that influence the supply chain performance; a simulated integrated system dynamics model is formulated. Multiple simulation runs of the model is done to find the changes in the model structure and policies have been designed on the basis of parametric changes and structural changes to enhance the supply chain performance. System Dynamics is a computer-based approach that is useful for policy design and analysis. It addresses the dynamic issues having feedback notion in social, industrial and economic systems. STELLA, a simulated software, is used in this paper to unveil the underlying symptoms that generate the undesirable behavior pattern. Experimenting with computer model helps to know deeply insight of the problem and determine the areas which pave the path for policy formulations and policy intervention based on practical industrial exposure and the experiential data.