Purchasing Performance Evaluation: with Data Envelopment Analysis

Because of supply chain management and other factors, purchasing's performance is considered an important element of corporate performance. Nonetheless, the measurement of purchasing performance, and comparing that performance to other purchasing departments has proven to be very difficult. These difficulties stem from the lack of valid measurement criteria and adequate methodologies to aggregate individual performance measures into a single index of overall performance. Many methodologies are unable to account for the relative importance of performance measures, which varies among firms.