Measuring Supply Chain Efficiency and Congestion

This paper examines the efficiency of supply chain keeping the essence of processes that knits the stages of supply chain. In order to enhance and extend the variation of data envelopment analysis (DEA) methodology, this paper serves to supplement the DEA literature in its application to supply chain efficiency measurement. In addition an examination of input congestion is carried out indicates that a managerial inefficiency exist in the different process cycles of supply chains. However, presence of congestion indicates the inability to dispose of unwanted inputs without incurring cost. Using the DEA variation, supply chains are partitioned into three levels/stratums namely ʹbest-in-classʹ, ʹaverageʹ and ʹlaggardʹ. Substantial performance inefficiency is uncovered in the four process cycle dimensions. Relatively, down-stream process cycles of the supply chain exhibit better performance than the up-stream process cycles. The classification of supply chains serve as a guideline for best practices, and projects directly to the best-in-class.