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Purpose

The purpose of this paper is to develop a methodology using quality function deployment (QFD) approach for aligning competitive strategy with supply chain strategy.

Design/methodology/approach

QFD and utility‐based optimization approach are employed to achieve strategic fit between the competitive and supply chain strategies. The supply chain performance is defined by using the information contained in the House of Quality of QFD and utility functions.

Findings

Supply chain performance index is computed for the different sets of supply chain design objectives. An illustrative example is presented in this paper to describe the QFD approach for aligning competitive and supply chain strategies.

Originality/value

Application of QFD approach is a new approach to design a supply chain through aligning competitive and supply chain strategies.

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