A decision model for supplier selection in the presence of dual-role factors

Jingjing Ding, Wei Dong, Gongbing Bi and Liang Liang
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Wei Dong: University of Science and Technology of China, Anhui Province, P.R. China
Gongbing Bi: University of Science and Technology of China, Anhui Province, P.R. China
Liang Liang: Hefei University of Technology, Anhui Province, P.R. China

Journal of the Operational Research Society, 2015, vol. 66, issue 5, 737-746

Abstract: Best suppliers help manufacturers to gain and sustain a competitive advantage by improving product quality, reducing cost, shortening lead-time and so on. The crucial role played by suppliers in a supply chain renders the selection of a supplier or suppliers a significant work that attracts the attention of both researchers and practitioners. In the literature, data envelopment analysis (DEA) as a nonparametric technique is often applied to conduct a performance analysis. Little attention, however, has been paid to dual-role factors in the supplier selection process. This paper proposes a novel two-step approach to select suppliers in the presence of dual-role factors. As a combination of DEA and two-person zero-sum game theory, our work considers the strategic behaviour of the external environment and is able to handle the supplier selection in a competitive environment. Moreover, the proposed model circumvents the requirement to specify the status of a dual-role factor ahead of an evaluation and is easy to solve. Finally, the applicability of the procedure is illustrated by an application to a data set of 18 suppliers.

Date: 2015
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