Abstract
Supply Chain Management (SCM) represents an example of a complex multi-stage system. The SCM involves and connects different activities, from customer’s orders to received services, all with the aim of satisfying customers. The evaluation of a particular SCM is a complex problem because of the internally linked hierarchical activities and multiple entities. In this paper, the introduction of a non-radial DEA (Data Envelopment Analysis) model for the evaluation of different components of SCM, primarily in terms of sustainability, is the main contribution. However, in order to confirm the novelty and benefits of this new model in the field of SCM, a literature review of past applications of DEA-based models and methods are also presented. The non-radial DEA model was applied for the selection and evaluation of the environmental efficiency of suppliers considering undesirable inputs and outputs resulting in a better ranking of suppliers. Via perturbation of the data used, behavior, as well as the benefits and weaknesses of the introduced model are presented through sensitivity analysis.
Highlights
A prerequisite for providing products and services of high quality at the lowest cost is the effective management of the supply chain (SCM) [1].The efficiency of the supply chain (SC) is significantly dependent on the coordination both across firms and within firms because each part can influence the SC
Just a few of them considered undesirable inputs, which are an inseparable part of real production processes and applications, while consideration of undesirable outputs within Data Envelopment Analysis (DEA) models is still missing
Within the paper, the introduction and presentation of a new DEA model for the evaluation of different components of SCs, which is the main contribution of this paper, was presented
Summary
A prerequisite for providing products and services of high quality at the lowest cost is the effective management of the supply chain (SCM) [1]. The efficiency of the supply chain (SC) is significantly dependent on the coordination both across firms and within firms because each part can influence the SC. When any of the parts lack co-ordination, dramatic effects on the SC can result [2]. Measuring and monitoring the efficiency of the SC represents one of the most important steps towards its improvement. The DEA method is one of the most often used multi-criteria decision making (MCDM) methods for SC efficiency evaluation. This is why the model used in this paper is based on it
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