A Data Envelopment Analysis Approach to Supply Chain Efficiency

Alireza Amirteimoori,Leila Khoshandam

doi:10.1155/2011/608324

Alireza Amirteimoori, Leila Khoshandam

Open Access

https://doi.org/10.1155/2011/608324

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Abstract

Supply chain management is an important competitive strategies used by modern enterprises. Effective design and management of supply chains assists in the production and delivery of a variety of products at low costs, high quality, and short lead times. Recently, data envelopment analysis (DEA) has been extended to examine the efficiency of supply chain operations. Due to the existence of intermediate measures, the usual procedure of adjusting the inputs or outputs, as in the standard DEA approach, does not necessarily yield a frontier projection. The current paper develops a DEA model for measuring the performance of suppliers and manufacturers in supply chain operations. Additive efficiency decomposition for suppliers and manufacturers in supply chain operations is proposed.

Highlights

Data envelopment analysis DEA, originated from the work of Charnes et al 1, is a linear programming, nonparametric technique used to measure the relative efficiency of peer decision making units with multiple inputs and outputs
The current paper develops a DEA model for measuring the performance of suppliers and manufacturers in supply chain operations
A number of studies have looked at production processes that have two-stage network structure, as supply chain operations

Summary

Introduction

Data envelopment analysis DEA , originated from the work of Charnes et al 1 , is a linear programming, nonparametric technique used to measure the relative efficiency of peer decision making units with multiple inputs and outputs This methodology has been applied in a wide range of applications over the last three decades, in setting that include banks, hospitals, and maintenance. Talluri and Baker 8 proposed a multiphase mathematical programming approach for effective supply chain design Their methodology applies a combination of multicriteria efficiency models, based on game theory concepts, and linear and integer programming methods. If we treat the supply chain operation as a black-box, ignoring the intermediate measure may yield an efficient supply chain with inefficient supplier and/or manufacturer. The paper develops a DEA model for measuring the performance of suppliers and manufacturers in supply chain operations.

Problem Statement

Axiomatic Foundation

The Proposed Model

Numerical Example

Conclusions