How to Assess Sustainability of Suppliers in the Presence of Dual-Role Factor and Volume Discounts? A Data Envelopment Analysis Approach

Mohammad Izadikhah, Reza Farzipoor Saen*, Kourosh Ahmadi

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

22 Citations (Scopus)

Abstract

Sustainability factors play critical role for long-Term achievement of a supply chain management and purchasing process becomes more complicated with social and environmental pressures. Managing supplier selection process is a necessary step for companies seeking to manage their corporate legitimacy and reputations. Data envelopment analysis (DEA) has been widely used for supplier selection problems. In this paper, we propose a new super-efficiency method for evaluating sustainability of suppliers in the presence of dual-role factors and volume discounts. We show that enhanced Russell model (ERM) fails to present a complete ranking of suppliers. Our new model presents a complete ranking and also preserves properties of the ERM. Capabilities of our proposed method are shown using a couple of examples. A case study is presented to illustrate our proposed approach. The proposed method is used to select the best sustainable suppliers.

Original languageEnglish
Article number1740016
JournalAsia-Pacific Journal of Operational Research
Volume34
Issue number3
DOIs
Publication statusPublished - 2017

Keywords

  • data envelopment analysis
  • decision making unit
  • dual-role factor
  • enhanced Russell model
  • super-efficiency
  • Sustainable supply chain management
  • volume discounts

ASJC Scopus subject areas

  • Management Science and Operations Research

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