Title: A new model for ranking suppliers in the presence of both undesirable and non-discretionary outputs

Authors: Abdollah Noorizadeh; Mahdi Mahdiloo; Reza Farzipoor Saen

Addresses: Department of Industrial Management, Lappeenranta University of Technology, P.O. Box 20, 53851 Lappeenranta, Finland ' Department of International Business and Asian Studies, Griffith Business School, Gold Coast Campus, Griffith University, QLD 4222, Australia ' Department of Industrial Management, School of Management and Accounting, Karaj Branch, Islamic Azad University, Karaj, P.O. Box 31485-313, Iran

Abstract: Data envelopment analysis (DEA) can be used for supplier selection problem due to its multiple criteria nature. In suppliers' evaluation, there might be some factors, which are beyond the control of their management, that are needed to be modelled in an appropriate way. Also, there are some situations in which some factors are undesirable and they are favourable to be decreased. The aim of this paper is to propose a model for evaluation of suppliers' performance in the presence of both undesirable and non-discretionary outputs. This model can rank efficient suppliers by a super-efficiency DEA model. A numerical example has sought to demonstrate that the proposed model is actually applicable.

Keywords: supplier selection; undesirable outputs; non-discretionary outputs; super-efficiency DEA; data envelopment analysis; modelling; supplier ranking; suppliers; supplier performance.

DOI: 10.1504/IJSOM.2014.059560

International Journal of Services and Operations Management, 2014 Vol.17 No.3, pp.280 - 293

Published online: 17 Jun 2014 *

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