Applying The Three Stages Supplv Chain Dea Cooperative Model For Evaluating

"Vertical integration" is a business strategy for the firms to establish a competitive advantage, by generated powering for the firm to improve the overall performance of the supply chain. Firm which using the vertically integrated strategy is not necessary to dominate other parts by ownership structure, but they can involve with the other parts by using different levels of the corporate governance structures. Consequently, when the firms must to confront with the different business environments, the corporate governance structures in vertically integrated strategy can be applied to obtain the best business interests. Vertical integration researches were based on two approaches,1) the transaction cost economics approach, which is aimed to use the upstream or the downstream integration strategies to reducing the transaction costs and the agent costs, the result is to identify the most suitable for the corporate governance structure.2) The approach which considers the advantage from vertically integrated strategy by evaluating the organizational efficiency. This approach believes that vertical integration is to improve the overall supply chain performance, consequently, from this perspective, we can apply supply chain performance evaluation methods to measure the performance of vertical integration strategy. But in different supply chain systems have different requirements and other complex factors, consequently we can not use a simple measurement method to evaluate the performance, and must develop for each supply chain measurement system.This paper develops a data envelopment analysis (DEA) model to measure supply chain performance. DEA is a linear programming technique that calculates the relative efficiency of each DMU (Decision Making Unit) in comparison to other DMUs. DEA model has the advantage that the model’s efficiency score does not involve parameter estimation, but an efficiency score of a DMU is the weighted sum of outputs divided by the weighted sum of inputs, while weights is highest possible relative efficiency score to a DMU when keeping the efficiency scores of all DMUs less than or equal to1. However, by the traditional DEA approach, the internal system is look like a "black box" when measuring the supply chain performances. Then the complexity DEA models have been developed, the aimed that to evaluate the performance in each sub-processes and the overall performance, for many types of the supply chain systems, such as a chain-like system, a tree-like system, as well as the other types of the network system.In this paper, we used the two-stage supply chain DEA model to develop (a) three-stage supply chain with DEA cooperative model,(b) the parallel inputs with three-stage supply chain DEA cooperative model,(c) the parallel outputs with three-stage supply chain DEA cooperative model. In case of the Thai dried longan exporting industry, the using of these three models is to compare the performance of the vertically and non-vertically integrated supply chain in the different situations, which are included1) Using the three stage supply chain DEA cooperative model, to compare the performance between vertically integrated and non-integrated supply chain, in case of Thai’s dried longan exporting supply chainWe determined that the Thai’s dried longan exporting supply chain were included in three sub-processes:a) the farmer enterprises, b) the processing firms, and c) the distributors. The study were divided the supply chain into three groups, the first group is forward integrated to the processing sub-process by the farmer’s enterprises, the second group is non-integration, and the third group is backward integrated to the processing sub-process by the distributors. We can use the three-stage supply chain DEA cooperative model to compare the performance between these three types of the supply chain coordination. But the model has a limit, which requires the same formats between each links in the supply chain. To solve these problems, we applied the model to measure performance in the processing firms in each supply chain, by separating the intra firm operation into three stages (purchasing, baking and selling), to represent the performance in each supply chain activities. The purchasing sub-process performance index, which calculated from the model is represented the cooperation efficiency between the processing firms and the farmers, While the selling sub-process performance index, is represented the cooperation efficiency between the processing firms and the distributors. With this solution, we can analyze the chain, which is the best vertically integrated supply chain strategy in our observation.2) Applying the parallel inputs with three stage supply chain DEA cooperative model, to evaluate the make or buy decision We develop the parallel inputs with three stages supply chain DEA cooperative model, for comparing supply chain performance in the firms that using make and buy mixed strategies. In case of Thai dried longan processed enterprises, which were most established by members in the cooperative of the longan planting’s gardener. The model can be used to compare the performance of each firm, and being used to suggest the best strategic in the make or buy decision. This solution is usefulness for the firms in which developing their purchasing strategy.3) Applying the parallel outputs with three stage supply chain DEA cooperative model, to evaluate the supply chain dual distribution channels decisionWe has developed the parallel outputs with three stages supply chain DEA cooperative model, which is used to compare supply chain performance in the dual output processes system. In case of Thai dried longan processing firms that distribute their products to China market. The research has developed a type of tree-like system DEA approach, to evaluate the firm’s performance that using dual distribution channels strategy, and being used to suggest the best strategic in their decision. This approach is usefully not only for using compared performance between each firm in this industry, but also benefits for each firm to develop their product distribution strategy.In this research, our development can be used to not only in all above three cases, In addition, models can also be developed in other areas which can be summarized in three cases as below:1) To develop the complex DEA model, to evaluate the performance of the complex supply chain system. Our research is used the basic concept from the two stages of supply chain DEA model, to develop a chain like system DEA model, and2types of a tree like system DEA model. All of our models can be classified as the tools for evaluating the complex supply chain system. Then we can rely on our developing, to develop other types of the complex DEA models.2) To develop the complex DEA model which has a different joint relation between each stage of supply chain, the links between each stage can be considered as cooperative or non-cooperative (leader and follower) relation, then we can use the link between each stage with a different relation to create the complex system performance evaluation with DEA models. 3) To develop a DEA input-oriented model and DEA output-oriented model, in term of the improvement efficiency approaches. In chapter4and chapter5, we develop the supply chain performance measurement tools, as well as, we also applied this methods to improve a chain’s efficiency by changing the inputs ratio of the DMU, when the model is a DEA input-oriented approach. And by changing the outputs ratio of the DMU, when the model is a DEA output-oriented approach. Then, we can apply these two methods to improve efficiency in other supply chain system.