In the highly competitive supply chain environment, most companies cannot precisely obtain their performance status in real time such that they cannot make appropriate decisions to confront the market dynamics, demand variety and production exceptions…etc, and then they could be out of the advantage to compete. Therefore, the ability to measure the performance of operations can be taken as an important necessity for improvement, and companies have endeavored to increase their interests and capabilities of the performance measurement systems (PMSs). In fact, the lack of relevant performance measures has been recognized as one of the major problems in process and Supply Chain Management (SCM). Because of the very different views on what should constitute supply chain performance, many firms have found it difficult to practice SCM. As a prevalent industrial standard for SCM practices, Supply-Chain Operations Reference-model (SCOR-model) provides a systematic and comprehensive framework to measure a firm’s performance from different dimensions in the supply chain environment. In this thesis, we utilize Interaction Matrix to recognize the correlation between the performance metrics; construct a hierarchical structure based on standard formulas and definitions of SCOR-model and SAP R/3 ERP system and try to reflect the essence of the various supply chain performance dimensions. We further apply System Dynamics (SD) simulation to model the behaviors of the performance metrics based on several scenarios. Finally, Design of Experiments (DOE) is employed in analyzing the result of simulation through the what-if analysis and sensitivity analysis to provide the useful information for making decisions concerning SC performance.
