A Data Envelopment Analysis Approach to Supply Chain Efficiency

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.