Integrating Data Envelopment Analysis and Reverse Auction Using Bi-level Programming Approach

Over the past decade, supply chain management has turned to be a strategic goal for leading producing organizations. This is due to the rapid changes in the operating environment of the company, the high level of market globalization and the increasing growth of customer demand for more and higher quality of services. Among the activities in this area, management of procurement and sourcing could cause significant changes in many companies. In general, one of the most common methods of sourcing and procurement is reverse auction. In this paper, using bi level planning and Data Envelopment Analysis, a reverse auction process is designed to select suppliers. A Meta-Heuristic method based on the enumeration of all possible solutions is designed to solve the proposed model. Then a numerical study has been used for examining the accuracy of the model and the proposed solution.