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A DEA game model approach to supply chain efficiency

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Abstract

Data envelopment analysis (DEA) is a useful method to evaluate the relative efficiency of peer decision making units (DMUs). Based upon the definitions of supply chain efficiency, we investigate the efficiency game between two supply chain members. It is shown that there exist numerous Nash equilibriums efficiency plans for the supplier and the manufacturer with respect to their efficiency functions. A bargaining model is then proposed to analyze the supplier and manufacturer's decision process and to determine the best efficiency plan strategy. DEA efficiency for supply chain operations is studied for the central control and the decentralized control cases. The current study is illustrated with a numerical example.

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Authors and Affiliations

  1. College of Management, University of Massachusetts, Lowell, MA, 01845, USA

    Yao Chen

  2. School of Business, University of Science and Technology of China, He Fei, An Hui Province, P.R. China, 230026

    Liang Liang & Feng Yang

Authors
  1. Yao Chen
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  2. Liang Liang
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  3. Feng Yang
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Correspondence to Yao Chen.

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Chen, Y., Liang, L. & Yang, F. A DEA game model approach to supply chain efficiency. Ann Oper Res 145, 5–13 (2006). https://doi.org/10.1007/s10479-006-0022-y

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  • DOI: https://doi.org/10.1007/s10479-006-0022-y

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