Title: Supplier base reduction using data envelopment analysis

Authors: Julio Cesar Neves, Raad Qassim

Addresses: Brazilian Navy, Federal University of Rio de Janeiro, Ilha do Fundao, CEP 21945-970, Rio de Janeiro, Brazil. ' School of Engineering and COPPE, Federal University of Rio de Janeiro, Ilha do Fundao, CEP 21945-970, Rio de Janeiro, Brazil

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.

Keywords: supplier base reduction; data envelopment analysis; customer–supplier partnerships; performance evaluation; supplier performance.

DOI: 10.1504/IJMDM.2004.005009

International Journal of Management and Decision Making, 2004 Vol.5 No.1, pp.59 - 75

Published online: 11 Aug 2004 *

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