How to Assess Sustainability of Suppliers in the Presence of Dual-Role Factor and Volume Discounts? A Data Envelopment Analysis Approach

Mohammad Izadikhah (), Reza Farzipoor Saen and Kourosh Ahmadi ()
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Mohammad Izadikhah: Department of Mathematics, College of Science, Arak Branch, Islamic Azad University, Arak, Iran
Reza Farzipoor Saen: Department of Industrial Management, Faculty of Management and Accounting, Karaj Branch, Islamic Azad University, Karaj, Iran
Kourosh Ahmadi: Department of EMBA, Faculty of Management, Arak Branch, Islamic Azad University, Arak, Iran

Asia-Pacific Journal of Operational Research (APJOR), 2017, vol. 34, issue 03, 1-25

Abstract: Sustainability factors play critical role for long-term achievement of a supply chain management and purchasing process becomes more complicated with social and environmental pressures. Managing supplier selection process is a necessary step for companies seeking to manage their corporate legitimacy and reputations. Data envelopment analysis (DEA) has been widely used for supplier selection problems. In this paper, we propose a new super-efficiency method for evaluating sustainability of suppliers in the presence of dual-role factors and volume discounts. We show that enhanced Russell model (ERM) fails to present a complete ranking of suppliers. Our new model presents a complete ranking and also preserves properties of the ERM. Capabilities of our proposed method are shown using a couple of examples. A case study is presented to illustrate our proposed approach. The proposed method is used to select the best sustainable suppliers.

Keywords: Sustainable supply chain management; data envelopment analysis; decision making unit; enhanced Russell model; super-efficiency; volume discounts; dual-role factor (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (13)

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DOI: 10.1142/S0217595917400164

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