Supplier base reduction using data envelopment analysis

摘要

This paper aims to provide a quantitative basis, using data envelopment analysis, for management decision-making with regard to supplier base reduction. After introducing the importance of customer-supplier partnerships and the allied reduction in the supplier base, the concepts of the basic single-period data envelopment analysis model are presented. The principal contribution of this work, which is the development of a multiple-period data envelopment analysis model, especially tailored for evaluating supplier performance as a stepping stone for reducing the number of suppliers over the planning horizon, is described. A numerical example is employed to illustrate the application of the model in practice.