Suppliers ranking in the presence of undesirable outputs

Abdollah Noorizadeh, Mahdi Mahdiloo, Reza Farzipoor Saen*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

16 Citations (Scopus)

Abstract

In conventional usage of Data Envelopment Analysis (DEA) for supplier selection, it is assumed that producing more outputs relative to fewer inputs is a criterion of efficiency. However, in the presence of undesirable outputs, suppliers with more good (desirable) outputs and less bad (undesirable) outputs relative to fewer inputs should be recognised as efficient. In addition, to get a complete ranking among suppliers and also eliminate unrealistic weighting schemes among them, this paper proposes a cross-efficiency formulation of DEA, which can treat undesirable outputs. A numerical example demonstrates the application of the proposed model in supplier ranking context.

Original languageEnglish
Pages (from-to)354-374
Number of pages21
JournalInternational Journal of Logistics Systems and Management
Volume11
Issue number3
DOIs
Publication statusPublished - Mar 2012

Keywords

  • Cross-efficiency
  • Data envelopment analysis
  • DEA
  • Suppliers ranking
  • Undesirable outputs

ASJC Scopus subject areas

  • Management Information Systems
  • Management Science and Operations Research
  • Information Systems and Management

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