A data envelopment analysis approach to supplier selection in volume discount environments

Reza Farzipoor Saen and Majid Zohrehbandian

International Journal of Procurement Management, 2008, vol. 1, issue 4, 472-488

Abstract: Many practitioners and researchers have presented the advantages of supply chain management. In order to increase their competitive advantage, many companies consider that a well-designed and well-implemented supply chain system is an important tool. Under this condition, building on the closeness and long-term relationships between buyers and suppliers is a critical success factor to establish the supply chain system. Therefore, the supplier selection problem becomes the most important issue in implementing a successful supply chain system. Traditionally, many optimisation models of supplier selection assume that the average unit price of procured items is a constant. This assumption is not realistic because suppliers usually offer quantity discounts to encourage the buyers to order more. For dealing with this difficulty and for selecting the best suppliers with regard to multiple criteria, this paper introduces an innovative algorithm, which is based on Data Envelopment Analysis (DEA). A numerical example demonstrates the application of the proposed method.

Keywords: supplier selection; data envelopment analysis; DEA; volume discount; supply chain management; SCM. (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.inderscience.com/link.php?id=18432 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijpman:v:1:y:2008:i:4:p:472-488

Access Statistics for this article

More articles in International Journal of Procurement Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().