Supply Chain Performance Methods Based On Equivalent Efficiency Principle

Facing global competition environment in the21st century, enterprise managers has recognized that the single company didn’t adopt new competition environment. So each enterprise has to make a change in modern management from "virtual integration" to "horizontal integration", developing the "supply chain" involved in supplier, manufacturer and distributor. Only when every node operates cooperatively, can the whole chain make the biggest benefit. So, the study of performance evaluation is important to supply chain management.First, based on the achievements of supply chain performance of experts and scholars, and after analyzing the advantages and disadvantages of existing literature theory method, the paper indicate that single node and overall efficiency should be estimated, moreover the competing relationship should also be considered.Second, this thesis discuss that the primary principle during estimating how well the supply chain operation. On this base, we combine efficiency and coordination, and provide equivalent efficiency principle. For one thing, we define individual efficiency and overall efficiency definitely, and prove when output maximizes, members’efficiencies are equal. For another thing, we define the coordination in order to check out how the coordination among members affects the comprehensive abilities.Third, we make a detail research about performance of single input-output model and multi-inputs-outputs model. We take an example to illustrate two kinds of methods:DEA and equivalent efficiency principle. The results show that equivalent efficiency principle overcome DEA relative efficiency; using it we can evaluate supply chain from different industries. Moreover, we can figure out the factors affect the whole competitiveness of supply chain. In addition, the paper make a pilot study of production function, we hope describe the productivity specifically.At last, we evaluate performance of the commercial bank from three aspects:efficiency, coordination and overall performance, in order to illustrate the applicability and feasibility of this method.