Supplier Selection by the Pair of Nondiscretionary Factors-Imprecise Data Envelopment Analysis Models

Islamic Azad University, Karaj, Iran
Journal of the Operational Research Society (Impact Factor: 0.99). 10/2009; DOI: 10.1057/jors.2008.154
Source: OAI

ABSTRACT Discretionary models for evaluating the efficiency of suppliers assume that all criteria are discretionary, that is, controlled by the management of each supplier and varied at its discretion. These models do not assume supplier selection in the conditions that some factors are nondiscretionary. The objective of this paper is to propose a new pair of nondiscretionary factors-imprecise data envelopment analysis (NF-IDEA) models for selecting the best suppliers in the presence of nondiscretionary factors and imprecise data. A numerical example demonstrates the application of the proposed method. Yes Yes

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    ABSTRACT: Supplier selection plays a key role in an organization because the cost of raw material constitutes the main cost of the final product. Selecting an appropriate supplier is now one of the most important decisions of the purchasing department. This decision generally depends on a number of different criteria. The objective of this paper is to propose a data envelopment analysis methodology that considers both undesirable outputs and imprecise data simultaneously. The proposed model is applied in supplier selection problem. A numerical example demonstrates the application of the proposed method. Yes Yes
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