Supplier selection in the presence of dual-role factors, non-discretionary inputs and weight restrictions
by Abdollah Noorizadeh, Mahdi Mahdiloo, Reza Farzipoor Saen
International Journal of Productivity and Quality Management (IJPQM), Vol. 8, No. 2, 2011

Abstract: The decision of supplier selection is strategic and crucial to the success of corporations. For selecting suppliers, data envelopment analysis (DEA), as a multiple criteria decision-making tool, has been applied for several times. However, there may exist some particular situations in supplier selection problem; i.e. (1) the presence of dual-role factor which may be classified either an input or an output. The quantity of such a factor may influence the relative efficiency of the suppliers, (2) the presence of non-discretionary or exogenously fixed inputs; in any realistic situation, there may exist non-discretionary criteria that are beyond the control of a management and (3) the presence of weight restrictions; sometimes it is needed to incorporate the preferences of managers and decision-makers into DEA model which is used to select suppliers. The objective of this paper is to propose a DEA model for selecting suppliers in the presence of dual-role factors, non-discretionary inputs and weight restrictions. A numerical example demonstrates the application of the proposed model.

Online publication date: Mon, 08-Aug-2011

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