Build to Order supply chain efficiency using Stochastic Frontier Analysis (SFA)

The Build-to-Order supply chain (BTO-SC) is one agile supply chain that has received great attention in research and industry. Flexibility and responsiveness in mass customization has become a major objective of many companies and this has led to the further development of BTO-SC. The main purpose of this study has been to measure, compare and analyse the impact of the BTO-SC and traditional supply chain on the company's performance and highlight the key performance measures that can influence the decision making. A methodology for analysing the efficiency of the BTO-SC is developed using Stochastic Frontier Analysis (SFA) which is compared to the traditional supply chain in which both are then compared to the deterministic Data Envelopment Analysis (DEA) model. The targeted population for study has been companies in the computer industry functioning in BTO-SC and/or a traditional supply chain network. Such a comparative analysis provides a more informative tool for use as part of an investment guideline for companies who wish to adopt BTO-SC principles.