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Data envelopment analysis (DEA) has been widely applied to address various decision analysis problems due to its usefulness in evaluating multi‐criterion systems and providing improvement targets for such systems. A supplier selection problem is inherently a multi‐criterion decision problem, and DEA has been applied to evaluate suppliers for an individual product. This paper proposes and demonstrates the application of DEA in evaluating the overall performances of suppliers in a manufacturing firm. A simplified DEA model for supplier selection is first presented to evaluate the overall performances of suppliers with a strategic orientation of being able to reduce the number of suppliers. A case study is then presented to demonstrate supplier performance evaluation using DEA for supplier selection and performance improvement considerations.

A third party logistics practice in using a materials service center to provide a manufacturer the component‐parts management function has become more widely accepted in industry. Due to the long‐term, high investment, and high part variety nature of a material service center operation, a sound evaluation procedure is needed for a potential user of this service to guide its decision making. An evaluation procedure is proposed here for materials service center decisions. The procedure includes five stages, which are to define the objectives, define the specification, identify the alternatives, evaluate the alternatives, and select an alternative. Specific considerations in these stages are discussed. A case study based on a materials service decision of a manufacturing firm is presented in the paper to demonstrate the use of the evaluation procedure.

Price has traditionally been the order‐winning criterion for ready‐to‐assemble (RTA) products such as furniture, bicycles, kit models, etc. In order to be able to compete in today’s demanding RTA market, manufacturers must increasingly emphasize quality, not price, as the order‐winning criterion. On the other hand, the order winners for external customers are time‐based – speed of delivery and flexibility. In this paper, we discuss the dimensions of RTA products’ quality. In addition, we discuss changes in business processes, information flow and information technology necessary to effectively improve the competitiveness of RTA manufacturers.