Evaluating performance of supply chain based on network data envelopment analysis

Abstract

Supply chain is one of the most important parts of industrial and economic problems. Measuring relative performance of supply chain is often tedious task since there is a need to deal with the multiple performance measures associated with members of supply chain, which integrate and coordinate the performance overall production system. Traditional approaches for measuring relative efficiency of supply chain cannot be applied directly for evaluating the relative efficiency of supply chains. This is because some measures linked to supply chain members cannot be simply classified as “outputs” or “inputs” of the supply chain. We present different models, which directly evaluate the performance of the supply chain as well as its members, while considering the relationship among the members. The modeling processes are based on the concept of non-cooperative and cooperative games. In this paper, we propose network data envelopment analysis for measuring relative performance of supply chain, which considers the system by distinct processes or stages, each one with its own inputs and outputs and with intermediate flows among the stages. The proposed method reduces computations to determine the relative efficiency of overall supply chain and efficiency of each the supply chain members.

Keywords

• Supply chain
• Data envelopment analysis Efficiency
• Network model
• Cooperative and non-cooperative models