A DCBA‐DEA methodology for selecting suppliers with supply risk

With dynamic changes in the supply chain environment, suppliers have a tendency to exhibit risk or uncertainties in their performance. As risk increases, there is an associated increase in the amount of data required to monitor and manage the performance. Based on this understanding, a novel data collection budget allocation (DCBA) methodology for measuring and analysing vendor performance with supply risk has been developed. This paper makes contributions in the theoretical, conceptual and practical developments of the methodology. The methodology can quantitatively prioritise data collection efforts and provide a measure for a more accurate efficiency score. This DCBA methodology provides a tool for measuring efficiency in the real environment, which is stochastic in nature.