Abstract
This paper illustrates the use of Data Envelopment Analysis (DEA) in measuring supply chain efficiency. Two models were developed – Technical Efficiency (TE) model and Cost Efficiency (CE) model. The information obtained enable managers to identify inefficient operations and take appropriate actions for improvement. The opportunity cost serves as a good reference on resource allocations. The models are further enhanced with scenario analysis to derive more meaningful insights for resources planning. The study proves the usefulness of DEA as a decision-making tool in supply chain. Future research could look into the possibility of modelling DEA in a stochastic supply chain environment.
Original language | English |
---|---|
Pages (from-to) | 188-207 |
Number of pages | 20 |
Journal | International Journal of Applied Systemic Studies |
Volume | 1 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2007 |
Externally published | Yes |
Keywords
- AE
- allocative efficiency
- CE
- cost efficiency
- data envelopment analysis
- DEA
- opportunity cost
- supply chain efficiency
- TE
- technical efficiency