Abstract:
For selecting suppliers, Data Envelopment Analysis (DEA), as a multiple criteria decision making tool, has been applied for several times. However, sometimes in supplier selection problem, there may exist some criteria which may be classified either an input or an output. These factors are known as dual-role factors. However, in traditional treatment of dual-role factors in DEA, free reign is given when deciding for each Decision Making Unit (DMU) which outputs and inputs to emphasize, many different avenues are present by which a DMU can appear efficient. Therefore, it is common to have many DMUs that are relatively efficient. In addition, since each DMU has its own set of weights, all of its weight might be put on a single output and input. Therefore, to overcome these drawbacks, this paper proposes a cross-efficiency model which is able to consider dual-role factors. A numerical example demonstrates the application of the proposed model in supplier selection context.
Abdollah Noorizadeh, Mahdi Mahdiloo and Reza Farzipoor Saen, 2012. Using DEA Cross-efficiency Evaluation for Suppliers Ranking in the Presence of Dual-role Factors. Trends in Applied Sciences Research, 7: 314-323.
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