Exploring the impact of ‘intrinsic assurance regions’ in DEA on adding value in supply chains using ‘uniquely inefficient’ decision-making units

Data Envelopment Analysis (DEA) has been used in many studies to measure the efficiency of supply chains. There, the authors primarily utilised the traditional Charnes‐Cooper‐Rhodes (CCR) or Banker‐Charnes‐Cooper (BCC) model to measure the relative performance of Decision‐Making Units (DMUs) in the supply chain. Dharmapala (2008) analysed Talluri and Baker's (2002) data under the CCR model with Intrinsic Assurance Regions (IARs) and proposed a methodology to add value in supply chains by projecting inefficient DMUs onto the frontier. In this paper, we analyse the same data and explore the impact of IARs on the added values in supply chains using uniquely inefficient DMUs.