Design of Key Performance Indicators (KPIs) for the Management of Poultry Supply Chains

Abstract

Supply chain management must balance multiple objectives, as resilience to disruptions and the ability to deliver finished products regularly, which is an essential value-added for many customers. Achieving this regularity requires specific Key Performance Indicators (KPIs). In Agri-food Supply Chains (AFCs), these KPIs are influenced by biological constraints that determine the duration of production stages. This study identifies KPIs for managing a vertically integrated poultry AFCs. To this end, we developed a Systems Dynamics (SD) model that integrates breeder management, incubation processes, feed requirements, and sales activities with the associated cost and revenue structures. The model uses delays, nonlinearities, and feedback mechanisms, and allows for optimization, sensitivity analysis, and Monte Carlo simulation. This research contributes to the Operations Research literature by providing a decision-support tool for designing more robust, resilient and efficient AFCs. Finally, the proposed KPIs help managers anticipate how disruptions propagate through the system and how they affect profit and deliveries to customers, necessary to comply with European NFRD and CSRD regulations.