Screening Efficiency and Entrepreneurship Potential in Automotive Suppliers Using DEA

Abstract

This study aims to screen entrepreneurial potentials of automotive manufacturing and performance criteria. Supplier selection as a key part of supply chain management (SCM) facilitates the creation of sustainable competitive advantage that can cause new ventures and business growth development. Efficient supplier selection method is a main part in SCM for outsourcing in businesses. The character of supplier selection is a multi-criteria decision making (MCDM) problem and multiple criteria should be respected in the selection procedure. This study assessed the suppliers’ efficiency through Data Envelopments Analysis (DEA). Keyword: Supply chain management, supplier selection, multi-criteria decision making, DEA