scholarly journals Supplier selection using chance-constrained data envelopment analysis with non-discretionary factors and stochastic data

Author(s):  
Majid Azadi ◽  
Reza Farzipoor Saen ◽  
Madjid Tavana
Author(s):  
Majid Azadi ◽  
Reza Farzipoor Saen

Supplier selection has a strategic importance for every company. Hybrid integer data is one of the models in data envelopment analysis (DEA). In many real world applications, data are often stochastic. A successful approach to address uncertainty in data is to replace deterministic data via random variables, leading to chance-constrained DEA. In this paper, a chance-constrained hybrid integer data envelopment analysis (CCHIDEA) model is developed and also its deterministic equivalent which is a nonlinear program is derived. Furthermore, it is shown that the deterministic equivalent of the CCHIDEA model can be converted into a quadratic program. In addition, sensitivity analysis of the CCHIDEA model is discussed with respect to changes on parameters. Finally, a case study demonstrates the application of the proposed model.


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