A Study Of Using Data Envelopment Analysis(DEA) For The Performance Assessment Of Suppliers

With the world economics and the modem science and technology developing,the competition between enterprises has gradually become the competition between the supplychains.The profits of the enterprise is not only decided by it’s performance,but also is decided by it’s coordination with other enterprises.Therefore,the W’m-Win relations should be’established between them.Therefore,Enterprise can obtain stable sources of supply and ask supllies to take a small amount and frequent delivery through the assessment and selection of suppliers,then establishing long-term partnerships with suppliers.in this way,enterprise may solve the problem of continuous product inventory Enterprise also can increase the trust with suppliers through communication and sharing information with each other so that supplies has a better performance in delivery and quality However, for small and medium-sized enterprises,they have many difficulties in terms of supplier assessment and selection limited by its scale and the environment of market competition Therefore, it play a key role to guide and assess suppliers.Under this situation,Host company L decide to guide all of supplies,then assess and optimize supplies through objective and effective method, in order to develop a group of suppliers suiting companyAffected by many factors, host enterprises should be able to comprehensive consideration of various factors they should guide and assess supplies selecting objective and effective way.Data Envelopment Analysis (DEA) is considered to be an effective assessment tool to reduce the complexity brought by other traditional assessment schemes of many performance indicators. In addition, DEA provides a holistic analysis for the supplier to guide its improving direction, to benchmark with the one of higher efficiency. In the study, DEA is applied in a stage-based supplier analysis and assessment. The DEA efficiency rating results in various stages are used to decide to select the strategic supplier, to provide the assistance in improving supplier’s capability, and to drop a supplier from the list if it should not meet the efficiency assessment even after theassistance scheme provided by the host company.