Benchmarking in the Supply Chain Using Data Envelopment Analysis

It is necessary to evaluate performance using a proper combination of all resources of supply chain in the best possible way to provide products and services in the market.One strategy to measure supply chain efficiency is the data envelopment analysis (DEA), which involves use of current inputs and outputs to evaluate supply chain performance.Therefore, the outcome of each DEA evaluation is not suitable for providing suitable benchmark for the future.Hence, managers are not able to improve the activities of their subset using the results of DEA model.For this purpose, we forecast data of units under evaluation using system dynamics simulation and then we present a proper model to formulate strategies for improving performance using the proposed DEA model.Finally, we implemented the designed algorithm in the milk industry of Fars province (Iran), and proper strategies for improving the efficiency of this industry were developed.