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A preliminary study on using Data Envelopment Analysis (DEA) in measuring supply chain efficiency

Wong, Wai Peng and Jaruphongsa, Wikrom and Lee, Loo Hay and Wong, Kuan Yew (2007) A preliminary study on using Data Envelopment Analysis (DEA) in measuring supply chain efficiency. International Journal of Applied Systemic Studies , 1 (2). pp. 188-207.

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Abstract

This paper illustrates the use of Data Envelopment Analysis (DEA) in measuring supply chain efficiency. Two models were developed – Technical Efficiency (TE) model and Cost Efficiency (CE) model. The information obtained enable managers to identify inefficient operations and take appropriate actions for improvement. The opportunity cost serves as a good reference on resource allocations. The models are further enhanced with scenario analysis to derive more meaningful insights for resources planning. The study proves the usefulness of DEA as a decision-making tool in supply chain. Future research could look into the possibility of modelling DEA in a stochastic supply chain environment.

Item Type:Article
Uncontrolled Keywords:data envelopment analysis; DEA; supply chain efficiency; technical efficiency; cost efficiency; allocative efficiency; opportunity cost; supply chain management; SCM; resource allocation; scenario analysis; resource planning.
Subjects:T Technology > TJ Mechanical engineering and machinery
Divisions:Mechanical Engineering
ID Code:6905
Deposited By: Mohamad Ali Duki
Deposited On:15 Dec 2008 09:42
Last Modified:15 Dec 2008 09:42

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