Sourcing analytics for evaluating and selecting suppliers using DEA and AHP: a case of the aerospace company
Seong-Jong Joo,
Bradley C. Boehmke,
Hokey Min and
Ozden Bayazit
International Journal of Services and Operations Management, 2020, vol. 35, issue 4, 461-481
Abstract:
Sourcing represents one of the most upstream supply chain activities, which often dictates the rest of downstream supply chain activities. As such, a poor sourcing decision has a significant trickle-down effect on the effectiveness of a buying firm's manufacturing and logistics decisions. Considering such significance, it is imperative for the firm to make a wise, systematic decision in evaluating and selecting suppliers. To support a critical sourcing decision, we propose a supplier evaluation decision-aid tool within the framework of business analytics, which takes in to account the multiple facets of supplier performance evaluation criteria. As a core of such a tool, we develop a relatively new model that is capable of considering both objective and subjective performance criteria simultaneously using a combination of data envelopment analysis (DEA) and analytic hierarchy process (AHP). To verify the practicality and validity of the proposed analytics-based tool, we applied it to an actual problem facing a US aerospace company.
Keywords: supplier evaluation; analytic hierarchy process; AHP; data envelopment analysis; DEA; business analytics; case study. (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijsoma:v:35:y:2020:i:4:p:461-481
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