Supplier base reduction using data envelopment analysis
by Julio Cesar Neves, Raad Qassim
International Journal of Management and Decision Making (IJMDM), Vol. 5, No. 1, 2004

Abstract: This paper aims to provide a quantitative basis, using data envelopment analysis, for management decision-making with regard to supplier base reduction. After introducing the importance of customer–supplier partnerships and the allied reduction in the supplier base, the concepts of the basic single-period data envelopment analysis model are presented. The principal contribution of this work, which is the development of a multiple-period data envelopment analysis model, especially tailored for evaluating supplier performance as a stepping stone for reducing the number of suppliers over the planning horizon, is described. A numerical example is employed to illustrate the application of the model in practice.

Online publication date: Wed, 11-Aug-2004

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