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EFFICIENCY SUPPLY CHAIN OF THE COMPANIES USING K242/42

DATA ENVELOPMENT ANALYSIS (DEA) MODEL

NAME : PUTRI NATASHA BINTI CHE AMAT

SUPERVISOR : ENCIK MOHD FAIEZ BIN SUHAIMIN

FALCULTY OF COMPUTER AND MATHEMATICAL SCIENCES UITM CAWANGAN KELANTAN CAMPUS MACHANG
ABSTRACT

This study evaluates the supply chain efficiency of twelve Malaysian companies using

the Data Envelopment Analysis (DEA) model. DEA, a non-parametric method, is
employed to measure the relative efficiency of decision-making units (DMUs) by
analyzing multiple inputs and a single output. In this project, total cost and total asset

are used as inputs, while revenue is used as the output. The CCR output-oriented
model is applied using DEA-Solver Pro to identify both efficient and inefficient
companies. The findings reveal that Kossan Rubber Industries Berhad, F&N Beverages

Manufacturing Sdn Bhd, and Malaysia Smelting Corporation Berhad achieved full
efficiency scores, serving as performance benchmarks. Conversely, companies such
as IHH Healthcare Berhad and Scientex Berhad exhibited low efficiency scores,

indicating potential for operational improvement. This analysis provides valuable
insights for organizations seeking to enhance performance, optimize resources, and
maintain competitiveness in Malaysia’s supply chain industry. IMPLEMENTATION

PROBLEM STATEMENT

Many companies face difficulties in optimizing their supply chain due to poor

data quality, ineffective resource management, and lack of integrated
technologies. Traditional methods for measuring performance often fail to
account for multiple inputs and outputs simultaneously. This leads to

inaccurate assessments and missed opportunities for improvement. As
inefficiencies in supply chains can increase operational costs by 10–20%,

there is a critical need for a more robust and data-driven evaluation
approach. This study addresses this gap by applying the DEA model to
analyze and improve supply chain efficiency among selected Malaysian
companies.

OBJECTIVES

The purpose of this project are:

1.To identify the Decision Making Units (DMUs)
in the supply chain companies.
2.To determine the efficiency scores of 12

selected companies in Malaysia using DEA
Model.

3.To provide recommendations to improve
supply chain efficiency based on CCR

results.

METHODOLOGY

RESULT &

DISCUSSION

TThe DEA model successfully
CONCLUSION identified efficient and inefficient

supply chain companies in
Malaysia. The results help

highlight areas for improvement
and support better decision-

making to enhance operational
performance.

RECOMMENDATIONS

Improve operational cost
control

Optimize asset usage
Enhance workforce

productivity
Benchmark against efficient
companies