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Supplier base reduction using data envelopment analysis

Author

Listed:
  • Julio Cesar Neves
  • Raad Qassim

Abstract

This paper aims to provide a quantitative basis, using data envelopment analysis, for management decision-making with regard to supplier base reduction. After introducing the importance of customer–supplier partnerships and the allied reduction in the supplier base, the concepts of the basic single-period data envelopment analysis model are presented. The principal contribution of this work, which is the development of a multiple-period data envelopment analysis model, especially tailored for evaluating supplier performance as a stepping stone for reducing the number of suppliers over the planning horizon, is described. A numerical example is employed to illustrate the application of the model in practice.

Suggested Citation

  • Julio Cesar Neves & Raad Qassim, 2004. "Supplier base reduction using data envelopment analysis," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 5(1), pages 59-75.
    • Handle: RePEc:ids:ijmdma:v:5:y:2004:i:1:p:59-75
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