A preliminary study on using Data Envelopment Analysis (DEA) in measuring supply chain efficiency

Wai Peng Wong, Wikrom Jaruphongsa, Loo Hay Lee, Kuan Yew Wong

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4 Citations (Scopus)

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 languageEnglish
Pages (from-to)188-207
Number of pages20
JournalInternational Journal of Applied Systemic Studies
Volume1
Issue number2
DOIs
Publication statusPublished - 2007
Externally publishedYes

Keywords

  • AE
  • allocative efficiency
  • CE
  • cost efficiency
  • data envelopment analysis
  • DEA
  • opportunity cost
  • supply chain efficiency
  • TE
  • technical efficiency

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