Frontier-Based Performance Analysis Models for Supply Chain Management: State of the Art and Research Directions

Computers & Industrial Engineering, Vol. 66, pp. 567–583

Posted: 25 Jul 2014

See all articles by Per J. Agrell

Per J. Agrell

Louvain School of Management (LSM); Center for Operations Research and Econometrics (CORE)

Adel Hatami-Marbini

Université Catholique de Louvain

Date Written: November 2013

Abstract

Effective supply chain management relies on information integration and implementation of best practice techniques across the chain. Supply chains are examples of complex multi-stage systems with temporal and causal interrelations, operating multi-input and multi-output production and services under utilization of fixed and variable resources. Acknowledging the lack of system’s view, the need to identify system-wide and individual effects as well as incorporating a coherent set of performance metrics, the recent literature reports on an increasing, but yet limited, number of applications of frontier analysis models (e.g. DEA) for the performance assessment of supply chains or networks. The relevant models in this respect are multi-stage models with various assumptions on the intermediate outputs and inputs, enabling the derivation of metrics for technical and cost efficiencies for the system as well as the autonomous links. This paper reviews the state of the art in network DEA modeling, in particular two-stage models, along with a critical review of the advanced applications that are reported in terms of the consistency of the underlying assumptions and the results derived. Consolidating current work in this range using the unified notations and comparison of the properties of the presented models, the paper is closed with recommendations for future research in terms of both theory and application.

Keywords: Supply chain management, Data envelopment analysis, Two-stage process, Game theory, Bi-level programming

JEL Classification: C14, M11, C79

Suggested Citation

Agrell, Per J. and Hatami-Marbini, Adel, Frontier-Based Performance Analysis Models for Supply Chain Management: State of the Art and Research Directions (November 2013). Computers & Industrial Engineering, Vol. 66, pp. 567–583, Available at SSRN: https://ssrn.com/abstract=2470536

Per J. Agrell

Louvain School of Management (LSM) ( email )

Université catholique de Louvain
1 place des doyens
Louvain-la-Neuve, BE 1348
Belgium

HOME PAGE: http://www.uclouvain.be/ilsm

Center for Operations Research and Econometrics (CORE) ( email )

Université catholique de Louvain
34 Voie du Roman Pays
B-1348 Louvain-la-Neuve, BE 1348
Belgium

HOME PAGE: http://www.uclouvain.be/core

Adel Hatami-Marbini (Contact Author)

Université Catholique de Louvain ( email )

1 place des doyens
Louvain La Neuve, 1348
Belgium
486707387 (Phone)

HOME PAGE: http://www.core.ucl.ac.be/OFFICES/CVs/CV_HATAMI_Adel.pdf

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