A new network epsilon-based DEA model for supply chain performance evaluation

Madjid Tavana*, Hadi Mirzagoltabar, Seyed Mostafa Mirhedayatian, Reza Farzipoor Saen, Majid Azadi

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

77 Citations (Scopus)

Abstract

Supply chain performance evaluation problems are inherently complex problems with multilayered internal linking activities and multiple entities. Data Envelopment Analysis (DEA) has been used to evaluate the relative performance of organizational units called Decision Making Units (DMUs). However, the conventional DEA models cannot take into consideration the complex nature of supply chains with internal linking activities. Network DEA models using radial measures of efficiency are used for supply chain performance evaluation problems. However, these models are not suitable for problems where radial and non-radial inputs and outputs must be considered simultaneously. DEA models using Epsilon-Based Measures (EBMs) of efficiency are proposed for a simultaneous consideration of radial and non-radial inputs and outputs. We extend the EBM model and propose a new Network EBM (NEBM) model. The proposed NEBM model combines the radial and non-radial measures of efficiency into a unified framework for solving network DEA problems. A case study is presented to exhibit the efficacy of the procedures and to demonstrate the applicability of the proposed method to a supply chain performance evaluation problem in the semiconductor industry.

Original languageEnglish
Pages (from-to)501-513
Number of pages13
JournalComputers and Industrial Engineering
Volume66
Issue number2
DOIs
Publication statusPublished - 2013

Keywords

  • Epsilon-based measure
  • Network data envelopment analysis
  • Supply chain performance evaluation

ASJC Scopus subject areas

  • Computer Science(all)
  • Engineering(all)

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