Shewit, Woldegebriel (PhD)Desalegn, Wubet2019-01-172023-11-182019-01-172023-11-182018-06http://etd.aau.edu.et/handle/12345678/15867Optimization in supply chain management is differentiated to maximize the profitable and minimize overall operation costs through stakeholders and business partners. Optimization of supply chain management is mainly contributed to ultimately goal of product supplied from source to end users. It has also facilitated socioeconomic growth of the country based on supplied value add goods from the manufacturing industries including agro-industries to consumers. The sector of supply chain management is very wide in order to competitive supply food and fast moving consumables goods in the market based on integrate and collaborate with stakeholders. The study of performance optimization is the outcome of internal and external supply chain integration based on cluster collaboration with channel of business partners that synchronized each other’s in the supply of consumables goods. To optimize supply chain performance, efforts have been required to integrate and cluster collaborates with stakeholders and business partners in order to provide quality services to customers. Among the efforts of the study on performance optimization of SCM systems, the research used both primary and secondary source of data to identify gaps of supply chain in Alle Bejimla. The study focused on the existing supply chain systems and further examined by using observation, questionnaires distributed to the respondents and informal key interviewed of top and middle managements. Besides that the research has conducted extensive literature review on the integration and cluster collaboration to optimize supply chain performance in the case company. The findings show that performance optimization of SCM systems of Alle Bejimla is significance essential to meet customer requirements and satisfaction. The study analyzed overall supply chain activities through Alle Bejimla in order to serve customers by provide food and fast moving consumables goods. The major gaps found in Alle Bejimla which didn’t supplied enough food and fast moving consumables goods to consumers. These major gaps occurred due to lack of integration and cluster collaboration with stakeholders and business partnerships. Besides that transport and inventory management systems are other challenges to Alle Bejimla. Based on further assessment and evaluation the actual inventory data under considering transportation & other operation costs, the research has improved the overall inventory operation costs by 24.2% minimized from the actual operational costs. And also the research proposed conceptual model to optimize SCM performance in order to serve customers at right place in the right time with low costs. Besides that Alle Bejimla should adopt the new concept in order to optimize the competitiveness of business in the market and exceed customers’ requirements. It also carries out the new concept to achieve performance optimization of supply chain management systems of the case of Alle Bejimla and maximize its income profits based on customer satisfactory.en-USSupply chainOptimizationperformanceintegrationcluster collaborationThesis