On the impact of 'non-uniquely inefficient' decision-making units in DEA on improving efficiency in supply chains: a case from published data
by P. Sunil Dharmapala
International Journal of Value Chain Management (IJVCM), Vol. 1, No. 4, 2007

Abstract: Data Envelopment Analysis (DEA) has been used in many studies to measure the efficiency of supply chains. There, the authors primarily utilised the traditional Charnes-Cooper-Rhodes (CCR) or Banker-Charnes-Cooper (BCC) model to measure the relative performance of decision-making units in the supply chain. In this paper, we focus on the impact of 'non-uniquely inefficient' supply units on the operational efficiency of the supply chain. By analysing suppliers' data already published in the literature, we assert that the existence of such units could (mis)lead the management to make an unrealistic decision that may adversely affect the overall efficiency of the supply chain.

Online publication date: Thu, 13-Sep-2007

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