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Arab Journal of Administration المجلة العربية للإدارة

Abstract

This study aims to measure the impact of the complexity of supply chain performance in industrial companies in the Kingdom of Saudi Arabia. For achieving this objective, the study has used analytical technique to get to the results. Scale was developed to study the relationship between the variables. The sample was selected from industrial companies from the area of Riyadh and Qassim, the sample size was (138). The results indicate that there are significant effects of increased complexity in the supply chain on performance, these negative effects stemming from the long lead times for suppliers, instability in main production scheme, and demand variability.In light of these findings, the study set the most important recommendations: Manufacturers should achieve backward integration toward suppliers to avoid delays in orders, this one hand, and on the other to focus on developing a stable production blueprint that ensures no distractions in the production processes. With regard to the demand variability, the companies should intensify their efforts in designing products that reduce the variability in product design, through marketing efforts that increase the number of homogeneous clients, the use of information technology, or the focus on the simplification of the production system (Lean Production) to avoid environmental instability, by removing waste (loss) through reducing variability and changes in customers, suppliers, and instability in the internal processes simultaneously.

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