This paper develops a variable returns to scale multi-echelon data envelopment analysis (DEA) model to measure the efficiency of supply chain. The model is constructed at first with the assumption of serial sequence in a supply chain. The inputs of one stage become the output of the other stage in the multi-echelon structure. The traditional variable returns to scale model of DEA is modified to fit in the multi-echelon structure. The developed model helps to evaluate the supply network in a coordinated manner. It also provides helpful insights as how to improve the supply network performance.
Part of the book: Multi-Criteria Methods and Techniques Applied to Supply Chain Management