Sustainable Supply Chain Evaluation with Shared Resources and Shared Feedbacks: A Common Set of Weights Slack Based Model

Abstract

Data envelopment analysis (DEA) has been recently employed for performance and efficiency evaluation of decision-making units (DMUs) with multiple inputs and outputs. Complex internal relations within a DMU required more accurate DEA models than existing classic DEA. In real world applications, shared resources, among stages of a supply chain, is of great interest for managers and decision makers. Unfair allotment of shared factors can render the assessment invalid. In this study, an innovative DEA model is formulated for efficiency evaluation of a supply chain with shared factors. In the first step, a linear DEA model is presented in the multiplier form, based on the slackbased measure for efficiency assessment, in order to obtain the optimal proportion of the shared resources and shared feedbacks which are dual-role factors are presented. Then, the aggregate efficiency is decomposed into its stage efficiencies. Next, the presented model is extended for deriving the Common Set of Weights (CSW) for efficiency evaluation of the entire chain and correspondence stages. The case of 20 sustainable supply chains in the oil industry is considered with the developed DEA approach.