Application of DEA to improve performance of multi-member supply chain with imprecise information flow

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1 Applicai f DEA iprve perfrace f uli-eber suppl chai wih iprecise ifrai flw Vahi abbasi* Depare f Iusrial Egieerig Uiversi f Siece a Culure [email protected] NiaYaa Sheas Depare f Iusrial Egieerig Uiversi f Siece a Culure Saeh Maiaeh-Chaghaeh Yug researches club Islaic Aa Uiversi Ceral Tehra brach Kewrs: Daa evelpe aalsis Suppl chai ulieber iprecise aa Absrac Nwaas alg wih he faig f ecic brers a icrease cpeiiveess i he glbal scee rgaiais r iprve efficiec a prucivi b fferig services accrig reques f heir cusers a esablish re value ae fr heir.this leas use he uli-eber suppl chais as a righ chice i rer ehace he cpeiive abili f cpaies he arke (wih allcaig apprpriae aciviies he ebers). S his paper ries use aa evelpe aalsis as a reliable a achievable l fr perfrace evaluaig perfrace iprvee ieificai f iefficie resurces kw fr rgaiais i assesse quali a perfrace iprvee f ulieber suppl chai i he siuai where he ifrai flws are ierval bewee chai ebers.

2 . INTRODUCTION I ears pas researchers have pai uch aei issues ccerig suppl chai ue ea f arke. I is bvius ha icrease f cpa cpeii bewee suppl chais highlighs he iprace f usig a prper sse fr evaluaig is perfrace recgie cpeii iprvee pprui. Meawhile suppl chai aagee (SCM) has bee a grea iprace i cpeiive sraeg ehace rgaiaial prucivi a prfiabili. I his regar iffere els have bee iruce evaluae suppl chai perfrace. The el prpse b [] ae lgisic scre cars a [2] el are eaples f all iclusive els (verall efficiec f suppl chai) a als [3] a [4] shwe a uber f applie researches perfrace evaluai. Hwever su suiable perfrace easuree sses are sill quie liie. These as a grea varie f applicais f DEA is use i evaluaig he perfraces f a ces i a aciviies such as busiess rae aagee a s. Therefre DEA is use as a pwerful isrue easure he verall chai a each subsses (suppl chai eber). Als i s pssible cver ierval aa eac aa a use he have re effecive evaluai. The becives f his paper are prvie a fcuse perfrace assesse a iprvig perfrace f suppl chai whe ifrai flw is eac a ierval aa are use as a DEA eh evaluae suppl chai.

3 2. DEA AND SUPPLY CHAIN Daa evelpe aalsis (DEA) has bee wiel uilie fr evaluaig relaive efficiec f rgaiais wih uliple ipu resurces a upu prucs. Rece ears have see a grea varie f applicais f DEA (Daa Evelpe Aalsis) fr use i evaluaig he perfraces f a iffere kis f eiies egage i a iffere aciviies i a iffere ces i a iffere curies. Als sreghs f DEA: DEA easil accaes uliple ipus a uliple upus. DEA es' ipse a paricular fucial fr relaig ipus upus. DEA irecl cpares a bservai agais e r re acual peers. DEA allws ipus a upus be easure i ver iffere uis. A uber f DEA suies have fcuse w-sage prcesses s ha ue he ipac f iereiae easures i DMUs he efficiec uli sage prcesses have bee csiere i rece ears see fr eaple [5]. Afer ha w sage prcess was applie he glbal 500 cpaies b [6] a [7] [8] evelp a iffere apprach fr w-sage prcess. As a resul f he fas evelpig echlg a grwig cplei f a s busiess lgisical sses are becig esel iercece. The cplicae srucure f suppl iver aagee rasprai a lgisics Faciliies lcai a lau flw f ifrai. Therefre perfrace evaluai is he grea iprace fr effecive

4 suppl chai aagee. Hwever su suiable ulieber f suppl chai perfrace easuree sses is sill quie liie whe flw f ifrai ealig wih iprecise aa bewee uli-ebers f suppl chai. A suppl chai is a iegrae aufacurig prcess wherei raw aerials are cvere i fial prucs he elivere cusers. O he her ha a suppl chai is a lgisics ewrk which csiss f all sages (e.g. rer prcessig purchasig iver crl aufacurig a isribui) ivlve i prucig a eliverig a fial pruc r service. A is highes level a suppl chai is cprise f w basic iegrae prcesses: () he Pruci Plaig a Iver Crl Prcess a (2) he Disribui a Lgisics Prcess.These Prcesses illusrae belw i Figure 2 prvie he basic fraewrk fr he cversi a vee f raw aerials i fial prucs. Fig 2. Suppl chai prcess

5 3. METHODE we csier a uli-eber suppl chai peraig uer DEA el whe all ebers have iprecise ifrai flw f each her. The prpse el als iefficie suppl chais iprve heir perfrace. The saar aa evelpe aalsis (DEA) eh requires ha he values fr all ipus a upus shul be kw eacl. Whe se upus a ipus are ukw ecisi variables such as bue aa he DEA el beces a -liear prgraig prble a is calle iprecise DEA (IDEA) [9]. Therefre we suppse N uli sage suppl chais (SCs) peer fr evaluai as shw i Fig. 3. Nael each SC (=2 N) csiss f M ebers a series where such as suppliers aufacurers whlesalers reailers cusers a s. Therefre each suppl chai has: p (p=2 P) Ipus f firs eber ( =2 D )(=2 -) Oupus f () h eber q (q=2 Q) a ipus f (+) h eber Oupus f las eber i each SCM while se f he are ierval aa.

6 X Z Z Z + Z - Subsse Subsse Subsse ( = 2-2) Y Figure 3: A uli-eber suppl chai we evelpe els [8] wih ierval aa i he wa f [9]. Assue p p is he ph ipus f subsse ha p is he lwer bu a pis he upper bu f he ipus f subsse a is he h iereiae easure f subsse ( h eber) a als q is he qh upu f SC. S we prpse he fllwig uli sage el wih ierval aa. q

7 () where BI is bue ipu se BO is bue upu se a BN is bue iereiae easure se. 3. Applicai I his seci we appl he vel evelpe el() he aa se use i able () which csis f 7 DMUs each havig hree ipus e iereiae easure a w upus. Tw ipus f each DMU are eac a he her e is ierval aa. Mrever he iereiae easure a he upus are ierval. BO q BO q BN BN BN BN BI p BI p q q q q q O p p p p p i

8 TABLE DATA OF 7 SUPPLY CHAIN AND PERFORMANCE EVALUATION SC SC2 SC3 SC4 SC5 SC6 SC7 X X 2 X 3 X 2 X 3 Z 2 Z Z Z Y 2 Z Y 2 Y SC SC SC SC SC SC SC Cclusis Suppl chai aagea (SCM) perfrace evaluai is a cple ecisi-akig prble ivlvig varius crieria uer ucerai siuais. Our ai was bai a eh fr csierig efficiec SCM wih iegraai f ierval

9 a eac aa. The presee el has ipra applicais i real wr where we ' have eac aa a ca' igre a iereiae lp f SCM. I is ecessar ei ha he curre el ca als be eee her iparise aa (Orial aa rai bue aa a Fu aa) a als rugh paraeers. Mre wrks ewrk prcesses ehace evalui f SCM is sill eee. This el ca be use evaluae he perfrace f suppl chai ewrk. Refereces [] S. Suuki T. Ekawa The ipac f suppl chai cpeeciies aagerial perfrace. I ieraial ural cferece. Tk (2006). [2] C. Lha L. Frui M. Wuers Desigig a perfrace easuree sse: A case su. Eurpea Jural f Operaial Research. 63(2005) [3] K.H. Lai E.W.T. Nagi T.C.E. Cheg A eprical su suppl chai perfrace i raspr lgisiics. Ieraial ural f pruci ecics. 87(2004) [4] F.T.S Chee al. A ccepual el f perfrace easuree fr suupl chais. Maagee ecisi. 4(2003) [5] L.M Seifr. J. Zhu(999) pr_abili a arkeabili f he p 55 US cercial baks.maagee siciece4 45(9) E. H. Miller "A e reflecr arras" IEEE Tras. Aeas Prpaga. be publishe [6] J Zhu. (2000) Muli-facr perfrace easure el wih a applicai Frue 500 cpaies. Eurpea Jural f Operaial Research. 23():05 24 [7] C. Ka S. N. Hwag (2008)"Efficiec ecpsii i w-sage aa evelpe aalsis: A applicai -life isurace cpaies i Taiwa" Eurpea Jural f Operaial Research [8] YChe. W.D Ck. N Li. & J Zhu.(2009). Derivig he DEA frier fr w-sage prcesses. Eurpea Jural f Operaial Research 96() [9] J. Zhu.(2003). Iprecise aa evelpe aalsis (IDEA): A review a iprvee wih a applicai. Eurpea Jural f Operaial Research

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