Sourcing analytics for evaluating and selecting suppliers using DEA and AHP: a case of the aerospace company
by Seong-Jong Joo; Bradley C. Boehmke; Hokey Min; Ozden Bayazit
International Journal of Services and Operations Management (IJSOM), Vol. 35, No. 4, 2020

Abstract: Sourcing represents one of the most upstream supply chain activities, which often dictates the rest of downstream supply chain activities. As such, a poor sourcing decision has a significant trickle-down effect on the effectiveness of a buying firm's manufacturing and logistics decisions. Considering such significance, it is imperative for the firm to make a wise, systematic decision in evaluating and selecting suppliers. To support a critical sourcing decision, we propose a supplier evaluation decision-aid tool within the framework of business analytics, which takes in to account the multiple facets of supplier performance evaluation criteria. As a core of such a tool, we develop a relatively new model that is capable of considering both objective and subjective performance criteria simultaneously using a combination of data envelopment analysis (DEA) and analytic hierarchy process (AHP). To verify the practicality and validity of the proposed analytics-based tool, we applied it to an actual problem facing a US aerospace company.

Online publication date: Tue, 17-Mar-2020

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