Capacity utilization of buyer-supplier relationships

Abstract

The evaluation of performance in buyer-supplier relationships through the measurement of capacity utilization and profitability of information flows occurring between two or more members involved in a supply chain have been considered. Therefore, it introduces a modified slacks-based measure (MSBM) model for supply chain performance evaluation by regard intermediate production. The modified model shows the input excesses, output shortfalls and the efficiency or inefficiency supply chain simultaneously. Among the input resources for production, some are fixed and cannot be easily altered, while some are flexibly alterable. The paper concludes with an empirical illustration, involving data on 17 bank branches of China Construction Bank in Anhui province that is a typical buyer-supplier supply chain process. © Indian Society for Education and Environment (iSee).