A data envelopment analysis game model approach to supply chain efficiency

A data envelopment analysis game model approach to supply chain efficiency

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Article ID: iaor20071784
Country: Germany
Volume: 145
Issue: 1
Start Page Number: 5
End Page Number: 13
Publication Date: Jul 2006
Journal: Annals of Operations Research
Authors: , ,
Keywords: statistics: data envelopment analysis, game theory
Abstract:

Data envelopment analysis (DEA) is a useful method to evaluate the relative efficiency of peer decision making units. Based upon the definitions of supply chain efficiency, we investigate the efficiency game between two supply chain members. It is shown that there exist numerous Nash equilibriums efficiency plans for the supplier and the manufacturer with respect to their efficiency functions. A bargaining model is then proposed to analyze the supplier and manufacturer's decision process and to determine the best efficiency plan strategy. DEA efficiency for supply chain operations is studied for the central control and the decentralized control cases. The current study is illustrated with a numerical example.

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