Supplier selection in the presence of dual-role factors, non-discretionary inputs and weight restrictions

Abdollah Noorizadeh, Mahdi Mahdiloo and Reza Farzipoor Saen

International Journal of Productivity and Quality Management, 2011, vol. 8, issue 2, 134-152

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.

Keywords: Malmquist DEA; data envelopment analysis; supplier selection; dual-role factors; non-discretionary inputs; weight restrictions; relative efficiency; exogenously fixed inputs; manager preferences; decision-makers; productivity; quality management. (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (5)

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