Author： Weber Charles A
Publisher： Emerald Group Publishing Ltd
ISSN： 1359-8546
Source： Supply Chain Management: An International Journal, Vol.1, Iss.1, 1996-01, pp. : 28-39
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Abstract
While it has long been recognized that vendor selection is multi-objective in nature, little has been done to develop techniques for measuring vendors' performance on multiple criteria. Demonstrates the use of data envelopment analysis (DEA) as a tool for measuring the performance of vendors on multiple criteria and for use in vendor negotiations. Describes the DEA model, develops a DEA formulation for measuring vendor efficiency and, finally, shows how a baby food manufacturer applied the DEA technique in a just-in-time environment. Shows how application of the DEA technique can provide savings in monetary and other measurable terms.
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