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Purpose The purpose of this paper is to introduce a more practical approach for supply chain performance measurement (SCPM) and to approve the promising role of internet of things (IoT) technologies in SCPM systems. Design/methodology/approach This is a conceptual paper that includes literature review analysis, designing a new approach for SCPM, and a case study scenario for proving its applicability. Findings The case study scenario shows that IoT can enhance SCPM, as it has the capability to enable real-time data collection, increase data efficiency as long as enable real-time communication within the supply chain (SC). Practical implications The proposed approach can help to develop performance measurement systems and applications enabled by IoT technologies. These systems can be used to monitor, manage, and control the overall SC in real time and in a more integrated and cooperative manner. Originality/value This paper provides a structured systems building approach tailored to show how to employ IoT technologies in the field of SCPM. This approach could help in establishing new performance measurement applications, and it is believed that both practitioners and researchers will benefit from it.

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We consider a discrete-time queueing system with the discrete autoregressive process of order 1 (DAR(1)) as an input process and obtain the actual waiting time distribution and the virtual waiting time distribution. As shown in the analysis, our approach provides a natural numerical algorithm to compute the waiting time distributions, based on the theory of the GI/G/1 queue, and consequently we can easily investigate the effect of the parameters of the DAR(1) on the waiting time distributions. We also derive a simple approximation of the asymptotic decay rate of the tail probabilities for the virtual waiting time in the heavy traffic case.