Title: Trade-off in facility location and facility efficiency in supply chain network: a data envelopment analysis approach

Authors: Iman Rahimi; Ali Emrouznejad; Sai Hong Tang; Abdollah Ahmadi

Addresses: Young Researchers and Elite Club, Isfahan (Khorasgan) Branch, Islamic Azad University, Iran ' Aston Business School, Aston University, Birmingham, UK ' Department of Mechanical and Manufacturing Engineering, Faculty of Engineering, University Putra Malaysia, Malaysia ' The School of Electrical Engineering and Telecommunications, University of New South Wales, Sydney, NSW 2032, Australia

Abstract: The purpose of this paper is to obtain an optimal DEA efficiency score simultaneously with facility location pattern for two-stage supply chain since there is a lack in the literature of multi-objective facility location and facility efficiency in supply chain network design. First network DEA has been introduced as a possible model to solve this problem. Secondly, we have presented a solution approach based on Benders decomposition algorithm (BDA) to deal with the large-scale size and last compare the result of the solution found via BDA with the result found from original problem via CPLEX. From the solution approach perspective, results of Benders decomposition algorithm depict that this algorithm even solving this problem for large-scale possesses better performance than CPLEX when the original problem is solved. Applicability and originality of the model have been explored with a real case study which validates the solution approach as well.

Keywords: supply chain networks; data envelopment analysis; DEA; optimisation; Benders decomposition algorithm; BDA; CPLEX.

DOI: 10.1504/IJISE.2020.112186

International Journal of Industrial and Systems Engineering, 2020 Vol.36 No.4, pp.471 - 495

Received: 14 Feb 2019
Accepted: 09 Jun 2019

Published online: 18 Dec 2020 *

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