A new DEA method for supplier selection in presence of both cardinal and ordinal data

Authors:
Mehdi Toloo;Soroosh Nalchigar
Affiliations:
Department of Mathematics, Islamic Azad University of Central Tehran Branch, Tehran, Iran;Department of Information Technology Management, Faculty of Management, University of Tehran, Tehran, Iran
Venue:
Expert Systems with Applications: An International Journal
Year:
2011

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Abstract

The success of a supply chain is highly dependent on selection of best suppliers. These decisions are an important component of production and logistics management for many firms. Little attention is given in the literature to the simultaneous consideration of cardinal and ordinal data in supplier selection process. This paper proposes a new integrated data envelopment analysis (DEA) model which is able to identify most efficient supplier in presence of both cardinal and ordinal data. Then, utilizing this model, an innovative method for prioritizing suppliers by considering multiple criteria is proposed. As an advantage, our method identifies best supplier by solving only one mixed integer linear programming (MILP). Applicability of proposed method is indicated by using data set includes specifications of 18 suppliers.