Evaluation of Supplier Performance and Efficiency

Author(s):  
Chandra Sekhar Patro

In the present competitive business environment, it is essential for the management of any organisation to take wise decisions regarding supplier evaluation. It plays a vital role in establishing an effective supply chain for any organisation. Most of the experts agreed that there is no one best way to evaluate the suppliers and different organizations use different approaches for evaluating supplier efficiency. The overall objective of any approach is to reduce purchase risk and maximize overall value to the purchaser. In this paper Data Envelopment Analysis (DEA) technique is developed to evaluate the supplier efficiency for an organisation. DEA is a multifactor productivity technique to measure the relative efficiency of the decision making units. The super efficiency method of DEA provides a way, which indicates the extent to which the efficient suppliers exceed the efficient frontier formed by other efficient suppliers. A case study is undertaken to evaluate the supplier performance and efficiency using DEA approach.

2011 ◽  
Vol 50 (4II) ◽  
pp. 685-698
Author(s):  
Samina Khalil

This paper aims at measuring the relative efficiency of the most polluting industry in terms of water pollution in Pakistan. The textile processing is country‘s leading sub sector in textile manufacturing with regard to value added production, export, employment, and foreign exchange earnings. The data envelopment analysis technique is employed to estimate the relative efficiency of decision making units that uses several inputs to produce desirable and undesirable outputs. The efficiency scores of all manufacturing units exhibit the environmental consciousness of few producers is which may be due to state regulations to control pollution but overall the situation is far from satisfactory. Effective measures and instruments are still needed to check the rising pollution levels in water resources discharged by textile processing industry of the country. JEL classification: L67, Q53 Keywords: Data Envelopment Analysis (DEA), Decision Making Unit (DMU), Relative Efficiency, Undesirable Output


2015 ◽  
Vol 6 (3) ◽  
pp. 49-64 ◽  
Author(s):  
Mohamad Amin Kaviani ◽  
Mehdi Abbasi

This paper introduces a new robust data envelopment analysis (RDEA) approach for analyzing and ranking the organizations' operations strategies. In the proposed RDEA method, pessimistic and optimistic efficiencies of decision making units (DMUs) obtained from the robust counterpart of the envelopment form and the optimistic counterpart of the multiplier form of DEA are introduced. The inputs and outputs data are assumed to be bounded data (interval numbers) in the proposed models. A case study in the cement industry is presented to demonstrate the applicability of the proposed RDEA approach. The results obtained from the authors' proposed RDEA approach is more robust and their method provides a more complete ranking of the DMUs compared to conventional Likert-based DEA model.


Author(s):  
V. Prakash ◽  
J. Rajesh ◽  
M. Thilagam

Data envelopment analysis (DEA) is a method of analyzing the relative efficiency of similar types of organizations known as decision making units (DMU’s). In this paper, DEA model is applied to evaluate the relative technical efficiency of state road transport undertakings (SRTU’s) in India during the period 2011-2012. The authors have considered thirty-four SRTU’s functioning in India. The variables chosen to characteristic production units are the number of fleet held, staff strength and fuel efficiency as inputs and Passengers carried as output. The BCC model is input- oriented allowing for variable returns to scale (VRS), units are ranked and the projection analyses are given.


2021 ◽  
Vol 39 (5) ◽  
pp. 9-24
Author(s):  
Javad Vakili ◽  
Hanieh Amirmoshiri ◽  
Mir Kamal Mirnia

Data Envelopment Analysis (DEA) is a nonparametric method for measuring the relative efficiency and performance of Decision Making Units (DMUs). Traditionally, there are two issues regarding the DEA simultaneously i.e., the identification of a reference point on the efficient boundary of the production possibility set (PPS) and the use of some measures of distance from the unit under assessment to the efficient frontier. Due to its importance, in this paper, two alternative target setting models were developed to allow for lowefficient DMUs find the easiest way to improve its efficiency and reach to the efficient boundary. One seeks the closest weak efficient projection and the other suggests the most appropriate direction towards the strong efficient frontier surface. Both of these models provides the closest projection in one stage. Finally, a proposed problem is empirically checked by using a recent data related to 30 European airports.


1970 ◽  
Vol 25 (2) ◽  
pp. 127-136 ◽  
Author(s):  
Aliasghar Sadeghi ◽  
Esmaeel Ayati ◽  
Mohammadali Pirayesh Neghab

The aim of the present study is the representation of a method to identify and prioritize accident-prone sections (APSs) based upon efficiency concept to emphasize accidents with regard to traffic, geometric and environmental circumstances of road which can consider the interaction of accidents as well as their casual factors. This study incorporates the segmentation procedure into data envelopment analysis (DEA) technique which has no requirement of distribution function and special assumptions, unlike the regression models. A case study has been done on 144.4km length of Iran roads to describe the approach. Eleven accident-prone sections were identified among 154 sections obtained from the segmentation process and their prioritization was made based on the inefficiency values coming from DEA method. The comparisons demonstrated that the frequency and severity of accidents would not be only considered as the main factors for black-spots identification but proper rating can be possible by obtaining inefficiency values from this method for the road sections. This approach could applicably offer decision-making units for identifying accident-prone sections and their prioritizations. Also, it can be used to prioritize intersections, roundabouts or the total roads of the safety organization domain.


2017 ◽  
Vol 7 (1) ◽  
pp. 16-26
Author(s):  
RAJESH J ◽  
PRAKASH V

Data Envelopment Analysis (DEA) is a method of analyzing the relative efficiency of similar type of organizations known as Decision Making Units (DMUs). In this paper, DEA model is applied to evaluate the relative technical efficiency of Cooperative Sugar Factories in Tamil nadu during the period 2012-2013. We have considered 15 sugar factories functioning in the state. The variables chosen here to characterize production units are,Sugar cane crushed, Share capital as inputs and Sugar production as output. The BCC model is Output- oriented allowing for variable returns to scale (VRS), units are ranked based on peer count summary.


2019 ◽  
Vol 22 (1) ◽  
pp. 93-106
Author(s):  
Luka Neralić ◽  
Margareta Gardijan Kedžo

Abstract After its introduction in 1978, Data Envelopment Analysis (DEA) has instantly been recognized as a useful methodology for measuring the relative efficiency of different entities, called Decision Making Units (DMUs), given multiple criteria. Up until nowadays, the popularity of DEA has been growing and a significant number of bibliographical items was published, reporting on both theoretical and empirical results. However, the main applicative area of DEA remained the performance measurement in economics and business. On the 40th anniversary of DEA, the aim of this paper is to present the DEA bibliography of Croatian scientists (up until June 2018). We consider six main categories of DEA-related publications, followed with key statistics and an overview of keywords and research areas. The whole list of DEA-related publications used in this analysis is published online. We believe this research will shed light on the state of DEA in Croatian science and motivate future researches.


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