Title: A study on the supplier selection for outsourcing in Iran's railway

Authors: Mohammad Mehdi Movahedi; Nima Saeidi; Mehdi Fathabadi

Addresses: Management Department, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran ' Young Researchers and Elite Club, Central Tehran Branch, Islamic Azad University, Tehran, Iran ' Economic Department, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran

Abstract: In today's competitive environment, industries are more vulnerable to economic changes. To help them keep better quality, higher productivity and low costs, it is necessary to have a right strategy. Therefore, the goal of this paper is to introduce outsourcing strategy as a tool for enhancing the organisational productivity by selecting the best supplier. Consequently, first, 30 suppliers that provide services/goods to Iran's Railway were selected and the amount of products/services provided by each supplier were determined in respect to the goals set by the company. Then the most important criteria were determined for the evaluation of the suppliers of Iran's railway. Following, the suppliers' efficiency degree was determined using DEA method. Finally, the suppliers were ranked through crossing efficiency matrix. The results indicate that the supplier 25 is the most efficient followed by the suppliers 2 and 4 respectively.

Keywords: railway; outsourcing; data envelopment analysis; DEA; supplier selection; goal programming; GP; Iran.

DOI: 10.1504/IJSOM.2019.102031

International Journal of Services and Operations Management, 2019 Vol.34 No.1, pp.48 - 64

Received: 01 Dec 2016
Accepted: 24 Jun 2017
Published online: 04 Sep 2019 *

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