Dealing with Supply Chain Complexity using Theory of Constraints Thinking Processes (Case Study of a Paper Manufacturing Firm)

In today competitive environment, increasing supply chain efficiency has considerable importance in success of firms. Various factors limit this increase, which are referred as supply chain complexities. Identification of these complexities and dealing with them is essential. This paper attempts to introduce and apply an efficient and effective method for dealing with complexity of supply chain. This method is based on systemic principles of theory of constraints. This research shows how a manager can use logical tools of theory of constraints thinking processes (TOC TP) to identify and deal with root causes of supply chain complexity. This approach was implemented partially in a paper manufacturing firm in Iran. Data were gathered by questionnaires and interviews and analyzed interactively with supply chain managers and experts of the firm in order to get valid results. In this case, three first steps of TOC TP i.e. drawing intermediate objective (IO) map, current reality tree (CRT) and conflict remove diagram (CRD) are performed. The results show that these logical diagrams are useful tools to identify supply chain complexity drivers and determine root causes of them.