Using data envelopment analysis to compare suppliers for supplier selection and performance improvement
Data envelopment analysis (DEA) has been widely applied to address various decision analysis problems due to its usefulness in evaluating multi-criterion systems and providing improvement targets for such systems. A supplier selection problem is inherently a multi-criterion decision problem, and DEA...
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| Published in | Supply chain management Vol. 5; no. 3; pp. 143 - 150 |
|---|---|
| Main Authors | , , |
| Format | Journal Article |
| Language | English |
| Published |
Bradford
MCB UP Ltd
01.08.2000
Emerald Group Publishing Limited |
| Subjects | |
| Online Access | Get full text |
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| Abstract | Data envelopment analysis (DEA) has been widely applied to address various decision analysis problems due to its usefulness in evaluating multi-criterion systems and providing improvement targets for such systems. A supplier selection problem is inherently a multi-criterion decision problem, and DEA has been applied to evaluate suppliers for an individual product. This paper proposes and demonstrates the application of DEA in evaluating the overall performances of suppliers in a manufacturing firm. A simplified DEA model for supplier selection is first presented to evaluate the overall performances of suppliers with a strategic orientation of being able to reduce the number of suppliers. A case study is then presented to demonstrate supplier performance evaluation using DEA for supplier selection and performance improvement considerations. |
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| AbstractList | Data envelopment analysis (DEA) has been widely applied to address various decision analysis problems due to its usefulness in evaluating multi‐criterion systems and providing improvement targets for such systems. A supplier selection problem is inherently a multi‐criterion decision problem, and DEA has been applied to evaluate suppliers for an individual product. This paper proposes and demonstrates the application of DEA in evaluating the overall performances of suppliers in a manufacturing firm. A simplified DEA model for supplier selection is first presented to evaluate the overall performances of suppliers with a strategic orientation of being able to reduce the number of suppliers. A case study is then presented to demonstrate supplier performance evaluation using DEA for supplier selection and performance improvement considerations. Data envelopment analysis DEA has been widely applied to address various decision analysis problems due to its usefulness in evaluating multicriterion systems and providing improvement targets for such systems. A supplier selection problem is inherently a multicriterion decision problem, and DEA has been applied to evaluate suppliers for an individual product. This paper proposes and demonstrates the application of DEA in evaluating the overall performances of suppliers in a manufacturing firm. A simplified DEA model for supplier selection is first presented to evaluate the overall performances of suppliers with a strategic orientation of being able to reduce the number of suppliers. A case study is then presented to demonstrate supplier performance evaluation using DEA for supplier selection and performance improvement considerations. A simplified data envelopment analysis model for supplier selection is first presented to evaluate the overall performances of suppliers with a strategic orientation of being able to reduce the number of suppliers. A case study is presented to demonstrate supplier performance evaluation using data envelopment analysis for supplier selection and performance improvement considerations. |
| Author | Liu, Jian Lall, Vinod Ding, Fong-Yuen |
| Author_xml | – sequence: 1 givenname: Jian surname: Liu fullname: Liu, Jian organization: Graduate Student, Department of Industrial and Manufacturing Engineering, North Dakota State University, Fargo, North Dakota, USA – sequence: 2 givenname: Fong-Yuen surname: Ding fullname: Ding, Fong-Yuen organization: Lecturer in the Department of Industrial and Manufacturing Engineering, North Dakota State University, Fargo, North Dakota, USA – sequence: 3 givenname: Vinod surname: Lall fullname: Lall, Vinod organization: Lecturer in the Department of Industrial and Manufacturing Engineering, North Dakota State University, Fargo, North Dakota, USA |
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| Snippet | Data envelopment analysis (DEA) has been widely applied to address various decision analysis problems due to its usefulness in evaluating multi-criterion... Data envelopment analysis DEA has been widely applied to address various decision analysis problems due to its usefulness in evaluating multicriterion systems... Data envelopment analysis (DEA) has been widely applied to address various decision analysis problems due to its usefulness in evaluating multi‐criterion... A simplified data envelopment analysis model for supplier selection is first presented to evaluate the overall performances of suppliers with a strategic... |
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| SubjectTerms | Case studies Data collection Data envelopment analysis Decision making Efficiency Linear programming Logistics Manufacturing Mathematical programming Performance evaluation Performance levels Supplier evaluation Suppliers Supply chain Supply chain management Target setting Variables |
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| Title | Using data envelopment analysis to compare suppliers for supplier selection and performance improvement |
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