**1. Introduction**

Supply chain management is emphasized on delivery parts on demands both regular, irregular, and uncertain circumstances. Inventory management is a critical aspect of management. There are four elements of inventory; raw materials, work in process (WIP), finished goods, and spare parts. The raw materials are components, subassemblies, or material that are purchased from outside the factory and used in the fabrication or assembly processes inside the factory. The WIP includes all finished parts or products that have been released to a production line. The finished good is final products or parts that are kept in the warehouse waiting to ship to customers by purchasing orders. Spare parts are standard components they bought from suppliers to maintain or repair production equipment. In automotive industry, a subcontractor is used as a major player in supply chain manufacturing cluster. The subcontractor is normally SME companies which makes contract for long period of time. Mostly, the subcontractor is sighed the contract according to the specific parts. However, the parts can be done by several contracts in order to

reduce and distribute risky. The subcontractor can be classified into several levels namely 2nd tier, 3rd tier, and so on which relied on the role and performance evaluation. To become a subcontractor, a company is applied and audited by a SCM committee of the 1st tier company. The applicants are evaluated by company profile, factory visit, auditing 3 divisions; planning, quality assurance, and supply chain, based on the subcontracting criteria. There are 4 main criteria such as safety, planning, production control, and quality. The safety aims to check that the subcontractor works safely in the well-prepared environment including machine protection, operator protection, and part protection. Planning involves with production supporting process. They are production planning, raw material requirement planning, order receiving plan, compound and components receiving plan, sending raw material back to the 1st tier, delivery plan, packing standard plan, and inventory control. In terms of supply chain, It can be classified into 3 main group based on manufacturing types: sheet metal parts, plastic parts, and rubber parts. However, production technology is not concern in this chapter but it focuses on performance management and evaluation of delivery, back order clearance, and quality of finished parts. One of the most important aspects is that customer satisfaction on the customer service process that suppliers must provide any automotive parts needed whenever they want. In this paper, it is concerned on the case study and information based on the rubber part manufacturing industry. Production process control consists of compound storage control, curing and de-flashing, machine and mold preventive maintenance, and production control. Quality involves with inspection, finished goods and defect management as well as problem solving, quality assurance based on ISO (record, traceability, and change management).

uncertain constraints on cloud computing system. Fuzzy logic based together with neural network or called neuro-fuzzy is developed to evaluate the performance of subcontractors and can be used for prediction the future events for rapid changes and provide a flexibility management on inventory and delivery to the end cus-

*Automotive Industrial Supply Chain Performance Evaluation under Uncertain Constraints…*

This section presents the concept and theory of supply chain management, fuzzy

Supply chain plays significant role to OEMs in terms of increasing market share in a highly competition industrial cluster such as automotive industry by accessing to advanced manufacturing technology, reduced time to market, lower production costs, and more effectively used of assets. Modern supply chain management has seamless relationship in dealing with uncertain and fluctuate demands, risk management, stock management, allocate capacity, real-time tracking manufacturing progress with on-line and could system as well as using and selection outsource as engineering service providers. In addition, the customer relationship management is critical for the effective supply chain management. In the previous time, the average time required for company to process and delivery to market and customer from warehouse inventory taken many days or even unpredictable time because of uncertainty. It might be inventory out of stock, misplaced work order, misdirected

Presently, the world changing a lot influencing from digital age and disruption.

Supply chain is traditionally combined with logistic which consists of two major elements; inbound and out bound logistics. The process begins with second tier

manufacturing processes. The inbound logistics are applied in this stage. Then, the finished goods are sent to distributors, agencies, and retails or even end users and customers. The structure of the supply chain is varied based on the companies. Therefore, the unique management is properly designed and created. However, the principle characteristics of supply chain are defined as ability of a firm to work with its suppliers to provide high quality material and components which are competitively priced. The closeness of relationship between vendor and customer in respects purchasing materials and inventory management reflects to the company's strategy and the role of supplier contributing to the long-term success of the firm.

performed as a backbone of most of the business process according to 4G and 5G even the 6G is coming soon. Orders from customer are rapidly changed to ecommerce and on-line purchasing which is supported by modern logistics controlling by GPS and cloud monitoring. The reality of connectivity among collaborating business organization continues to drive a new order of relationship called supply

Therefore, the information technology together with computerization are

suppliers to deliver parts or products to the first-tier suppliers' through

logic, fuzzy AHP, Neural network and performance evaluation. Supply chain is major links to every parts of the business processes and communicate to their chains and the 1st tier in both vertical and horizontal organization. Fuzzy logic is a methodology used to deal with uncertainty including fuzzy AHP which helps to arrange the priority factors for multi-decision making to reduce complexity. Neural net-

work is used to deal with qualitative data of performance evaluation.

shipment, total time to service customer escalated rapidly.

tomer of OEM.

**2. Concept and theory**

*DOI: http://dx.doi.org/10.5772/intechopen.93679*

**2.1 Supply chain management**

chain management.

**209**

The evaluation for renew-contract consists of two parts; monthly audit and yearly audit. The monthly audit is evaluated by the performance. They are mainly on delivery on-time, quality of finished goods, back order delivery. The result is achieved by grade level; A, B, C, and D. Grade A is excellent. B is good. C and D are needed to be improved. If the improvement is not successful and unsatisfaction, then the contract is resigned. The more details are in the later section. The yearly audit includes working system, ISO, improvement, control, and safety environment.

Supply chain performance evaluation for automotive supply chain is quite seriously emphasized on product quality and delivery on-time which are impact on human's live. The general problem is that the market is fluctuate and heavy competitiveness on the cost leadership. Supply chain and subcontractors are the key success methodology which are widely used all over the world. However, the problems are; 1. how to select subcontractors to produce parts effectively; 2. how to maximize cost when the capacities are suitably shared and distributes; 3. how to maximize cost for transportation of the whole subcontractor locations; 4. how to manage machine availability and uncertainty; 5. how to deal with uncertain performance and allocate production planning.

Modern computer information technology is currently applied to supply chain management such as computer integrated manufacturing (CIM), enterprise resources planning (ERP), internet of things (IOT), could manufacturing and so on. However, the SME subcontractors are not need to implement the fully high information technology or fully automation but it should invest or develop the parts of technology that can link to accompany the 1st tier company. One of the most critical part of the computer information technology used in the supply chain is could computing and monitoring as well as production execution in order to distribute and share information rapidly, real-time and on-time needed. Delivery is the most important for the automotive subcontractors especially at the 1st tier company. This chapter proposes automotive industrial supply chain performance evaluation under *Automotive Industrial Supply Chain Performance Evaluation under Uncertain Constraints… DOI: http://dx.doi.org/10.5772/intechopen.93679*

uncertain constraints on cloud computing system. Fuzzy logic based together with neural network or called neuro-fuzzy is developed to evaluate the performance of subcontractors and can be used for prediction the future events for rapid changes and provide a flexibility management on inventory and delivery to the end customer of OEM.
