Two-stage data envelopment analysis technique for evaluating internal supply chain efficiency
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Creator 1. Nisakorn Somsuk
2. Tritos Laosirihongthong
Title Two-stage data envelopment analysis technique for evaluating internal supply chain efficiency
Publisher Faculty of Engineering, Khon Kaen University
Publication Year 2557
Journal Title KKU Engineering Journal
Journal Vol. 41
Journal No. 4
Page no. 483-491
Keyword Internal Supply chain,Efficiency measurement,Two-stage data envelopment analysis
ISSN 0125-8273
Abstract 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.
KKU Engineering Journal

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