Data Envelopment Analysis to Assess Productivity in the United States Air Force Medical Supply Chain

Utilizing a DEA model created by Dr. Paul Jensen, of the University of Texas, each of 73 AF MTFs was assigned baseline efficiency rating in the current medical supply chain network structure. Efficiency was calculated based on the facility's capability to process input(s) to output(s). Effectiveness, operationalized as application of the appropriate strategy "to get the job done," was assessed as a function of lead time using average delivery days. Contract specifications and manpower authorizations for FY11 in addition to sales, receipts, order lines, and lead times for the previous two years were inputs and analyzed. Through a combination of contract and user-defined constraints, the model indicated several optimal locations for aggregate ordering centers by region, ultimately suggesting multiple virtual hub-and-spoke networks.