Frontier Derivation And Efficiency Of Two-level Dairy Supply Chain Using Network-DEA

The dairy industry is a emerging industry in the fast developed stage of China, the milk product has complete nutrition and becoming an important food of consumption. The dairy industry surmounts animal husbandry, manufacturing industry and circulation, the supply chain of raw milk production to terminal user has a long chain link,while provides the terminal product for the consumer, it has led the related industries to develop. In recent years, with people living standard’s enhancement and the expense idea’s transformation, the dairy sales increased every year, This phenomenon has created the good opportunity for the development of dairy industry, so that dairy industry has been tremendous growth and market share increased year by year, and has become the most dynamic industries of the local economy.However, there are some problems of the milk source of war, price war and dairy quality and safety, which reflects the inefficiencies of the dairy supply chain, not fully play the advantages of the supply chain and becomes the bottleneck of the development of dairy industry in china. So, finding the sources of inefficiency in dairy supply chain, and proposing the appropriate solutions, has the important policy meaning regarding the Chinese dairy industry’s healthy and sustainable development.Therefore, this paper was in-depth researched based on the efficiency of dairy supply chain, firstly, the paper reviews some relevant articles in this area. Based on these, it is found that many researches are mainly focused on qualitative analyses which are quite different from this paper, we secondly describe relevant theory of supply chain, efficiency evaluation and DEA method systematically, which serve as the theoretical background of this paper. Because of the particularity of the structure of dairy supply chain, in addition to the application of the CCR model for calculating the efficiency of two-level dairy supply chain which is made up of the raw milk product production stage and dairy processing stage, a network-based DEA model is formulated to fully exploit the internal structure of the two-level dairy supply chain and deriving the efficient DEA frontier for it, an example with two-level dairy supply chain of31provinces (autonomous regions and municipalities) demonstrate the network-based model. By calculation results and comparison study to find out the reasons and improve direction of the supply chain, proposing the policies and suggestions for the efficiency of two-level dairy supply chain.