DEA Models For Supply Chain or Multi-Stage Structure

Wade D. Cook (), Liang Liang (), Feng Yang () and Joe Zhu ()
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Wade D. Cook: York University
Liang Liang: University of Science and Technology of China
Feng Yang: University of Science and Technology of China
Joe Zhu: Worcester Polytechnic Institute

Chapter Chapter 11 in Modeling Data Irregularities and Structural Complexities in Data Envelopment Analysis, 2007, pp 189-208 from Springer

Abstract: Abstract Standard data envelopment analysis (DEA) models cannot be used directly to measure the performance of a supply chain and its members, because of the existence of the intermediate measures connecting those members. This observation is true for any situations where DMUs contain multi-stage processes. This chapter presents several DEA-based approaches in a seller-buyer supply chain context. Some DEA models are developed under the assumption that the relationship between the seller and buyer is treated as leader-follower and cooperative, respectively. In the leader-follower (or non-cooperative) structure, the leader is first evaluated using the standard DEA model, and then the follower is evaluated by a new DEA-based model which incorporates the DEA efficiency information for the leader. In the cooperative structure, one maximizes the joint efficiency that is modeled as the average of the seller’s and buyer’s efficiency scores, and both supply chain members are evaluated simultaneously.

Keywords: Supply chain; Efficiency; Best practice; Performance; Data envelopment analysis (DEA); Buyer; Seller (search for similar items in EconPapers)
Date: 2007
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DOI: 10.1007/978-0-387-71607-7_11

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