Using Free Disposal Hull Models in Supply Chain Management

To help improve customer satisfaction management (CRM), greater emphasis is given to the aspect of quality in the supply chain. And improve supply chain performance through integrated business management and strategic partnerships. On the other hand, strategic supply chain management decisions are made at a company level that determine benefits and efficiencies of the supply chain and effective management of supply chains assists to product and delivery of a variety of products at low cost, high quality products, short lead times and services at the least cost. Hence, performance evaluation is of most importance for effective supply chain management. This paper gives a new application of DEA model, and FDH model to evaluate the supply chain. The basic motivation is to ensure that efficiency evaluations are effected from only observed performances.