Designing a supply chain management based on distributers’ efficiency measurement

Abstract

This paper presents a supply chain management by considering efficiency in the system. The proposed study considers two objective functions where the first one maximizes the efficiency of the supply chain and the second one minimizes the cost of facility layout as well as production of different products. In order to measure the relative efficiency, the study uses the method developed by Klimberg and Ratick (2008) [Klimberg, R. K., & Ratick, S. J. (2008). Modeling data envelopment analysis (DEA) efficient location/allocation decisions. Computers & Operations Research, 35(2), 457-474.]. The study has been formulated as a mixed integer programming and the implementation of the proposed model has been demonstrated using some numerical example. The preliminary results indicate that it was possible to increase the efficiency of supply chain without increase the supply chain expenses.