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A data envelopment analysis approach to measuring vendor performance

Charles A. Weber (Research Consultant based at the Institute for Defense Analyses, Alexandria, Virginia, VA)

Supply Chain Management

ISSN: 1359-8546

Article publication date: 1 April 1996

Abstract

While it has long been recognized that vendor selection is multi‐objective in nature, little has been done to develop techniques for measuring vendors’ performance on multiple criteria. Demonstrates the use of data envelopment analysis (DEA) as a tool for measuring the performance of vendors on multiple criteria and for use in vendor negotiations. Describes the DEA model, develops a DEA formulation for measuring vendor efficiency and, finally, shows how a baby food manufacturer applied the DEA technique in a just‐in‐time environment. Shows how application of the DEA technique can provide savings in monetary and other measurable terms.

Keywords

Citation

Weber, C.A. (1996), "A data envelopment analysis approach to measuring vendor performance", Supply Chain Management, Vol. 1 No. 1, pp. 28-39. https://doi.org/10.1108/13598549610155242

Publisher

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MCB UP Ltd

Copyright © 1996, MCB UP Limited