Decision models for evaluation and selection of suppliers in the presence of cardinal and ordinal data, weight restrictions, and non-discretionary factors: An approach based on DEA with double frontiers
Author(s):
Article Type:
Research/Original Article (بدون رتبه معتبر)
Abstract:
Selection of suppliers for outsourcing is now one of the most important decisions of the purchasing department. These decisions constitute an important part of the production and logistics management in many firms. On the other hand, suppliers can be evaluated and selected from optimistic and pessimistic perspectives. There is an argument that both points of view must be considered simultaneously, and any approach that considers only one perspective is biased. This paper proposes a new “data envelopment analysis (DEA) with double frontiers” approach for evaluation and selection of suppliers. The DEA with double frontiers approach can identify the best supplier in the presence of weight restrictions, non-discretionary factors, and cardinal and ordinal data. This paper proposes to integrate both efficiencies in the form of a geometric mean efficiency that measures the overall performance of each supplier. It is shown that geometric mean efficiency has more discriminative power than any of the optimistic and pessimistic efficiencies. A numerical example illustrates the application of the proposed method.
Keywords:
Language:
Persian
Published:
Journal of Strategic Management in Industrial Systems, Volume:14 Issue: 50, 2020
Pages:
1 to 23
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