Two-stage data envelopment analysis technique for evaluating internal supply chain efficiency
A two-stage data envelopment analysis (DEA) which uses mathematical linear programming techniques is applied to evaluate the efficiency of a system composed of two relational sub-processes, by which the outputs from the first sub-process (as the intermediate outputs of the system) are the inputs for...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Khon Kaen University
2014-12-01
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| Series: | KKU Engineering Journal |
| Subjects: | |
| Online Access: | https://www.tci-thaijo.org/index.php/kkuenj/article/download/28308/24337 |
| Summary: | A two-stage data envelopment analysis (DEA) which uses mathematical linear programming techniques is applied to evaluate the efficiency of a system composed of two relational sub-processes, by which the outputs from the first sub-process (as the intermediate outputs of the system) are the inputs for the second sub-process. The relative efficiencies of the system and its sub-processes can be measured by applying the two-stage DEA. According to the literature review on the supply chain management, this technique can be used as a tool for evaluating the efficiency of the supply chain composed of two relational sub-processes. The technique can help to determine the inefficient sub-processes. Once the inefficient sub-process was improved its efficiency, it would result in better aggregate efficiency of the supply chain. This paper aims to present a procedure for evaluating the efficiency of the supply chain by using the two-stage DEA, under the assumption of constant returns to scale, with an example of internal supply chain efficiency measurement of insurance companies by applying the two-stage DEA for illustration. Moreover, in this paper the authors also present some observations on the application of this technique. |
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| ISSN: | 0125-8273 2286-9433 |