Title: A fuzzy two-stage DEA approach for performance measurement: real case of agility performance in dairy supply chains

Authors: Kaveh Khalili-Damghani; Mohammad Taghavi-Fard; Amir-Reza Abtahi

Addresses: Department of Industrial Engineering, South-Tehran Branch, Islamic Azad University, P.O. Box 1584743311, Entezari Alley, Kafayee Amani Ave., Mazandaran St., Emam-Hossein Sq., Tehran, Iran. ' Faculty of Management and Accounting, Allameh Tabataba'i University, P.O. Box 6479-14155, Haft-Peikar Alley, NezamiGanjavi Ave., Tavanir St., Tehran, Iran. ' Department of Knowledge Engineering and Decision Sciences, University of Economic Sciences, No. 206, Somayeh Ave., Villa St., Tehran, Iran

Abstract: In this paper, a fuzzy two-stage data envelopment analysis (FTSDEA) has been proposed. Each decision making unit (DMU) has been supposed to make up of two serially connected sub-DMUs. The vagueness of measures has been represented using linguistic terms parameterised through fuzzy sets. Mathematical modelling of proposed FTSDEA results in great reduction of computational efforts. The proposed FTSDEA associates an interval efficiency score to each DMU and sub-DMU. A Monte-Carlo simulation procedure has been supplied to rank and discriminate the interval efficiency scores of efficient DMUs and sub-DMU. A conceptual model including providers of agility, capabilities of agility, and goals of supply chain has been proposed. The model has been associated to a two-stage DMU with fuzzy inputs and outputs. Providers of agility are changed into capabilities of agility in first stage. Then, capabilities of agility are changed into goals of supply chain in second stage. The proposed approach has been applied in real case study of dairy supply chains.

Keywords: Malmquist DEA; data envelopment analysis; fuzzy DEA; two-stage analysis; agile supply chains; performance measurement; SCM; supply chain management; agility performance; dairy supply chains; DMU; decision making unit; serially connected sub-DMUs; vagueness; measures; linguistic terms; fuzzy sets; mathematical modelling; computational efforts; interval efficiency scores; Monte Carlo methods; computational algorithms; random sampling; computer simulations; physical systems; mathematical systems; simulation procedures; agility capabilities; supply chain goals; fuzzy inputs; fuzzy outputs; agility providers; Iran; dairy companies; applied decision sciences.

DOI: 10.1504/IJADS.2012.050019

International Journal of Applied Decision Sciences, 2012 Vol.5 No.4, pp.293 - 317

Published online: 09 Aug 2014 *

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