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You are working for an automobile assembly company in the United States. Specifically, you are responsible for selecting a supplier for your company. There are

You are working for an automobile assembly company in the United States. Specifically, you are responsible for selecting a supplier for your company. There are 10 candidates: some are from the U.S. and others are from foreign countries.

Question 1.You decided to select the best performing supplier based on efficiency and innovation. First, you need to applydata envelopment analysisto calculate the efficiency of each supplier. The efficiency is determined by three input factors (number of employees, value of fixed assets, and number of patents) and two output factors (profit and sale). You useoutput-oriented CCR modelbased on data in Table 1.

Table 1.Data for Question 1

Supplier

Input

Output

Number of employees

Value of fixed assets

Number of patents

Profit

Sale

A

200

30

20

100

200

B

200

50

10

110

220

C

300

70

20

120

240

D

300

50

10

130

260

E

400

30

30

140

280

F

400

90

40

150

300

G

500

110

30

160

320

H

500

130

40

170

340

I

600

110

50

180

360

J

600

90

60

190

380

Fill out Table 2 and determine efficient suppliers.

Table 2.Efficiency scores of suppliers

Supplier

Efficiency Score

Efficient? Yes or No

A

B

C

D

E

F

G

H

I

J

Second, you need to consider the innovation capacities of suppliers. Assume that the innovation capacities are represented by the number of patents. Of efficient firms, you select a supplier with more patents.

Indicate the supplier you selected. Also, submit the MS Excel file that supports your selection.

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