Title: Developing a chance-constrained free replicability hull model for supplier selection

Authors: Majid Azadi; Reza Farzipoor Saen

Addresses: Department of Industrial Management, Karaj Branch, Islamic Azad University, P.O. Box 31485-313, Karaj, Iran ' Department of Industrial Management, Karaj Branch, Islamic Azad University, P.O. Box 31485-313, Karaj, Iran

Abstract: Selecting appropriate suppliers has strategic significance for every company. The Free Replicability Hull (FRH) model is one of the models in Data Envelopment Analysis (DEA). In many real world applications, data are often stochastic. A successful approach to address uncertainty in data is to replace deterministic data via random variables, leading to chance-constrained DEA. In this paper, a Chance-Constrained FRH (CCFRH) model is developed; its deterministic equivalent, which is a nonlinear program, is also derived. Furthermore, it is shown that the deterministic equivalent of the CCFRH model can be converted into a quadratic program. In addition, sensitivity analysis of the CCFRH model is discussed with respect to changes in parameters. Finally, a numerical example demonstrates the application of the proposed model.

Keywords: SCM; supply chain management; CCDEA; chance-constrained DEA; data envelopment analysis; FRH; free replicability hull; chance-constrained programming; supplier selection; sensitivity analysis; uncertainty.

DOI: 10.1504/IJLSM.2012.048365

International Journal of Logistics Systems and Management, 2012 Vol.12 No.4, pp.375 - 394

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 01 Aug 2012 *

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