A data envelopment analysis approach by partial impacts between inputs and desirable-undesirable outputs for sustainable supplier selection problem

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Nemati ◽  
Reza Farzipoor Saen ◽  
Reza Kazemi Matin

PurposeThe objective of this paper is to propose a new data envelopment analysis (DEA) model for assessing sustainability of suppliers with partial impacts between inputs, desirable outputs and undesirable outputs.Design/methodology/approachThis paper examines partial impacts of inputs on desirable and undesirable outputs and applies weak disposability assumption to propose a novel DEA model to determine the sustainability of suppliers.FindingsThis paper shows the type of resource sharing in DEA models and takes into account sustainable development and sustainability assessment concepts for sustainable supplier selection problem and develops a DEA model for selecting the most sustainable suppliers with partial sharing of resources. To select the most sustainable suppliers, this model helps managers to consider aggregate efficiency, overall efficiency and bundle efficiency. The paper introduces the supplier which is efficient at all levels as the most sustainable supplier.Originality/valueFor the first time, this paper suggests a new DEA model by partial impact between inputs and good outputs/bad outputs for selecting sustainable supplier and deals with the situations in which each supplier has several subunits. The new model calculates aggregate efficiency, overall efficiency and subunit efficiency of supplier. paper introduces the supplier which is efficient in all levels including aggregate efficiency, overall efficiency and subunit efficiency as the best supplier.

2020 ◽  
Vol 33 (5) ◽  
pp. 947-963
Author(s):  
Nurcan Deniz

PurposeExpert evaluation is the backbone of the multi-criteria decision-making (MCDM) techniques. The experts make pairwise comparisons between criteria or alternatives in this evaluation. The mainstream research focus on the ambiguity in this process and use fuzzy logic. On the other hand, cognitive biases are the other but scarcely studied challenges to make accurate decisions. The purpose of this paper is to propose pilot filters – as a debiasing strategy – embedded in the MCDM techniques to reduce the effects of framing effect, loss aversion and status quo-type cognitive biases. The applicability of the proposed methodology is shown with analytic hierarchy process-based Technique for Order-Preference by Similarity to Ideal Solution method through a sustainable supplier selection problem.Design/methodology/approachThe first filter's aim is to reduce framing bias with restructuring the questions. To manipulate the weights of criteria according to the degree of expected status quo and loss aversion biases is the second filter's aim. The second filter is implemented to a sustainable supplier selection problem.FindingsThe comparison of the results of biased and debiased ranking indicates that the best and worst suppliers did not change, but the ranking of suppliers changed. As a result, it is shown that, to obtain more accurate results, employing debiasing strategies is beneficial.Originality/valueTo the best of the author's knowledge, this approach is a novel way to cope with the cognitive biases. Applying this methodology easily to other MCDM techniques will help the decision makers to take more accurate decisions.


2015 ◽  
Vol 28 (2) ◽  
pp. 218-242 ◽  
Author(s):  
Vinod Yadav ◽  
Milind Kumar Sharma

Purpose – The problem of supplier selection gets complicated when a company looks for various criteria to evaluate different suppliers. The decision criteria used for supplier selection process can be different for different organizations due to a large number of factors. Hence, it can be said that supplier selection is basically, a multiple criteria decision-making (MCDM) problem. The purpose of this paper is to propose a hybrid data envelopment analytical hierarchy process (DEAHP) approach to solve the supplier selection problem for an automobile company. Design/methodology/approach – In this study, the data envelopment analysis (DEA) approach is embedded into analytic hierarchy process (AHP) methodology. Literature review suggested that majority of researches found it appropriate using DEA and AHP methodologies for supplier selection process; hence it is felt that a hybrid DEAHP would be a useful methodology to offer a MCDM model for supplier selection problem. Findings – First, the key criteria of the supplier selection problem for the company are identified. Then a model is developed and implemented for supplier selection using DEAHP approach. This study concluded that quality, cost and service are the most crucial criteria for an automobile company operational in a developing country like India. Sensitivity analysis further helped to evaluate suppliers based on each criterion. Research limitations/implications – As this analysis and findings are based on only one case study of an Indian automobile company, and this necessitates caution in interpreting the results. The limited number of interviewed managers in a company restricts the generalizability of the results. Though the company selected for this study is typical of developing country businesses, the findings of the paper may not be readily extensible to other companies. Second, this study used retrospective settings, based on the interviewed feedback after the events had occurred. This method naturally poses limitations due to respondent recall and the accuracy of information provided. Third, the problem chosen for this study is based in a single country context and further additional research will be required to examine if the findings could be extended to other automobile companies in other developing nations. Also in some cases technique used in the study may pose some extra computational efforts. Practical implications – This study points out the importance of the supplier selection problem. It provides key criteria for supplier selection in Indian context also proposes a framework to deal with multiple criteria. proposed model deals with two crucial criteria long term relationships and flexibility which were relatively less discussed and considered in the literature in past. Originality/value – The proposed MCDM model can provide the guidelines and directions for the decision makers to effectively choose suppliers in the current competitive environment.


2016 ◽  
Vol 23 (1) ◽  
pp. 178-195 ◽  
Author(s):  
Alireza FALLAHPOUR ◽  
Atefeh AMINDOUST ◽  
Jurgita ANTUCHEVIČIENĖ ◽  
Morteza YAZDANI

Evaluation and selection of candidate suppliers has become a major decision in business activities around the world. In this paper, a new hybrid approach based on integration of Gene Expression Programming (GEP) with Data Envelopment Analysis (DEA) (DEA-GEP) is presented to overcome the supplier selection problem. First, suppliers’ efficiencies are obtained through applying DEA. Then, the suppliers’ related data are utilized to train GEP to find the best trained DEA-GEP algorithm for predicting efficiency score of Decision Making Units (DMUs). The aforementioned data is also used to train Artificial Neural Network (ANN) to predict efficiency scores of DMUs. The proposed hybrid DEA-GEP is compared to integrated approach of Artificial Neural Network with Data Envelopment Analysis (DEA-ANN) to support the validity of the proposed model. The obtained results clearly show that the model based on GEP not only is more accurate than the DEA-ANN model, but also presents a mathematical function for efficiency score based on input and output data set. Finally, a real-life supplier selection problem is presented to show the applicability of the proposed hybrid DEA-GEP model.


2018 ◽  
Vol 13 (3) ◽  
pp. 605-625 ◽  
Author(s):  
Mohammad Khalilzadeh ◽  
Hadis Derikvand

Purpose Globalization of markets and pace of technological change have caused the growing importance of paying attention to supplier selection problem. Therefore, this study aims to choose the best suppliers by providing a mathematical model for the supplier selection problem considering the green factors and stochastic parameters. This paper aims to propose a multi-objective model to identify optimal suppliers for a green supply chain network under uncertainty. Design/methodology/approach The objective of this model is to select suppliers considering total cost, total quality parts and total greenhouse gas emissions. Also, uncertainty is tackled by stochastic programming, and the multi-objective model is solved as a single-objective model by the LP-metric method. Findings Twelve numerical examples are provided, and a sensitivity analysis is conducted to demonstrate the effectiveness of the developed mathematical model. Results indicate that with increasing market numbers and final product numbers, the total objective function value and run time increase. In case that decision-makers are willing to deal with uncertainty with higher reliability, they should consider whole environmental conditions as input parameters. Therefore, when the number of scenarios increases, the total objective function value increases. Besides, the trade-off between cost function and other objective functions is studied. Also, the benefit of the stochastic programming approach is proved. To show the applicability of the proposed model, different modes are defined and compared with the proposed model, and the results demonstrate that the increasing use of recyclable parts and application of the recycling strategy yield more economic savings and less costs. Originality/value This paper aims to present a more comprehensive model based on real-world conditions for the supplier selection problem in green supply chain under uncertainty. In addition to economic issue, environmental issue is considered from different aspects such as selecting the environment-friendly suppliers, purchasing from them and taking the probability of defective finished products and goods from suppliers into account.


2021 ◽  
Vol 9 (4) ◽  
pp. 378-398
Author(s):  
Chunhua Chen ◽  
Haohua Liu ◽  
Lijun Tang ◽  
Jianwei Ren

Abstract DEA (data envelopment analysis) models can be divided into two groups: Radial DEA and non-radial DEA, and the latter has higher discriminatory power than the former. The range adjusted measure (RAM) is an effective and widely used non-radial DEA approach. However, to the best of our knowledge, there is no literature on the integer-valued super-efficiency RAM-DEA model, especially when undesirable outputs are included. We first propose an integer-valued RAM-DEA model with undesirable outputs and then extend this model to an integer-valued super-efficiency RAM-DEA model with undesirable outputs. Compared with other DEA models, the two novel models have many advantages: 1) They are non-oriented and non-radial DEA models, which enable decision makers to simultaneously and non-proportionally improve inputs and outputs; 2) They can handle integer-valued variables and undesirable outputs, so the results obtained are more reliable; 3) The results can be easily obtained as it is based on linear programming; 4) The integer-valued super-efficiency RAM-DEA model with undesirable outputs can be used to accurately rank efficient DMUs. The proposed models are applied to evaluate the efficiency of China’s regional transportation systems (RTSs) considering the number of transport accidents (an undesirable output). The results help decision makers improve the performance of inefficient RTSs and analyze the strengths of efficient RTSs.


2020 ◽  
Vol 39 (5) ◽  
pp. 7705-7722
Author(s):  
Mohammad Kachouei ◽  
Ali Ebrahimnejad ◽  
Hadi Bagherzadeh-Valami

Data Envelopment Analysis (DEA) is a non-parametric approach based on linear programming for evaluating the performance of decision making units (DMUs) with multiple inputs and multiple outputs. The lack of the ability to generate the actual weights, not considering the impact of undesirable outputs in the evaluation process and the measuring of efficiencies of DMUs based upon precise observations are three main drawbacks of the conventional DEA models. This paper proposes a novel approach for finding the common set of weights (CSW) to compute efficiencies in DEA model with undesirable outputs when the data are represented by fuzzy numbers. The proposed approach is based on fuzzy arithmetic which formulates the fuzzy additive DEA model as a linear programing problem and gives fuzzy efficiencies of all DMUs based on resulting CSW. We demonstrate the applicability of the proposed model with a simple numerical example. Finally, in the context of performance management, an application of banking industry in Iran is presented for analyzing the influence of fuzzy data and depicting the impact of undesirable outputs over the efficiency results.


2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Chao Lu ◽  
Haifang Cheng

Data envelopment analysis (DEA) is a nonparametric method for evaluating the relative efficiency of a set of decision-making units (DMUs) with multiple inputs and outputs. As an extension of the DEA, a multiplicative two-stage DEA model has been widely used to measure the efficiencies of two-stage systems, where the first stage uses inputs to produce the outputs, and the second stage then uses the first-stage outputs as inputs to generate its own outputs. The main deficiency of the multiplicative two-stage DEA model is that the decomposition of the overall efficiency may not be unique because of the presence of alternate optima. To remove the problem of the flexible decomposition, in this paper, we maximize the sum of the two-stage efficiencies and simultaneously maximize the two-stage efficiencies as secondary goals in the multiplicative two-stage DEA model to select the decomposition of the overall efficiency from the flexible decompositions, respectively. The proposed models are applied to evaluate the performance of 10 branches of China Construction Bank, and the results are compared with the results of the existing models.


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