Title: Developing a new cross-efficiency model with undesirable outputs for supplier selection
Authors: Kamyar Hosseinzadeh Zoroufchi; Majid Azadi; Reza Farzipoor Saen
Faculty of Management and Accounting, Department of Industrial Management, Islamic Azad University – Karaj Branch, P.O. Box 31485-313, Karaj, Iran
Faculty of Management and Economics, Islamic Azad University – Science and Research Branch, Tehran, Iran
Faculty of Management and Accounting, Department of Industrial Management, Islamic Azad University – Karaj Branch, P.O. Box 31485-313 Karaj, Iran
Abstract: Inappropriate selection of suppliers will have an adverse impact on the overall performance of the firm. One of the techniques that can be used for selecting supplier is data envelopment analysis (DEA). Traditional DEA models such as Charnes-Cooper-Rhodes and Banker-Charnes-Cooper can only measure radial efficiency (weak efficiency). To measure strong efficiency in DEA, Tone (2001) proposed slacks-based measure (SBM). This model deals directly with the input excesses and output shortfalls. The objective of this paper is to propose a neutral SBM with undesirable outputs for selecting the best supplier. A numerical example demonstrates the application of the proposed model.
Keywords: supplier selection; SCM; supply chain management; data envelopment analysis; cross-efficiency models; neutral SBM; slacks-based measure; neutral DEA; undesirable outputs.
Int. J. of Industrial and Systems Engineering, 2012 Vol.12, No.4, pp.470 - 484
Available online: 30 Oct 2012