A Hybrid Approach for Supply Chain Analysis: An Application of Network and Cluster Analysis

This study presents a quantitative method for investigating the network characteristics of supply chain management with the help of methodologies derived from the network analysis, which offers many techniques and indicators through measuring the links among nodes to demonstrate the structural patterns of connected systems. More precisely, this investigation derives the structural configuration of each function component within the supply chain by measuring the indicators of network analysis, including degree centrality, closeness centrality, betweenness centrality and PageRank centrality. This study empirically tests an example of supply chain taken from 22 functional organizations based on supply chain operations reference (SCOR) model. The results suggest the proposed method provides an appropriate understanding of each function organization in the supply chain model based on the structural characteristics relating to its network position on informational, material and functional flows. A number of recommendations are made regarding the role of importance be to understand based on the results of the network analysis.