Abstract: Evaluation to technical efficiency is of greatimportance for both academic research in management science and the real world applications in market economy. The exact evaluation to technical efficiency should be based on the accuracy of estimation to the frontier production functions. Supply chain management has proven as an effective means to provide high-quality product so rserves at the least cost. However,the research on the frontier production functions of supply chains is still in absence. Two reasons can be concluded:the first one is the absence of methods to estimate the frontier production functions of multiple-out put process,and the second is the absence of methods to estimate the frontier production functions of multiple-stage process. This paper will advance an approach to estimate the frontier production functions of supply chains and the two obstacles can be overcome. The real world application about commercial banking process demonstrates that the proposed approach can be used to estimate the frontier production functions of supply chains.

Key words: data envelopment analysis(DEA), Supply chain, Frontier production function