Evaluate the Potential Suppliers´ Performance Based on Heuristic Algorithm and Malmquist Model: Cased by IC Packaging and Testing Industry of Taiwan

To enhance the performance of global supply chain is one of the important competitive strategies for many businesses. The performance evaluation of suppliers within chain has become an important subject for impacting the efficiency of chain. It is not realistic to evaluate the performance by just one short period of time. To integrate the data across years would be a better way. Moreover, the suppliers always have different resources base, such as different inputs and outputs. Therefore, the concept of efficiency of data envelop analysis (DEA) is applied for this study. This study develops a systematic method based on the combination of the Malmquist productivity index model in DEA and heuristic algorithms to evaluate performances for different based suppliers within a period of several years. The case study of 14 companies in the IC packaging and testing industry listed in Taiwanpsilas Stock exchange are applied to verify the feasibility of proposed method. The results show that two firms, Advanced Semiconductor Engineering Inc. and Phoenix Precision Technology, would be better potential suppliers. Therefore, this study can be used to recommend better suppliers for better efficiency performance under different base resources and cross years time frame.