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Suppliers ranking by cross-efficiency evaluation in the presence of volume discount offers

Author

Listed:
  • Mahdi Mahdiloo
  • Abdollah Noorizadeh
  • Reza Farzipoor Saen

Abstract

The performance of each supply chain is significantly related to the performance of the suppliers. Due to the multiple criteria nature of the supplier selection problem, data envelopment analysis (DEA), as a multiple criteria decision-making tool, seems to be an appropriate method. This paper specifically focuses on the supplier selection problem when the suppliers offer volume discounts to encourage the purchase of large volumes. However, in all the papers which deal with the volume discount concept in DEA models, each decision-making unit (DMU) is free to decide which outputs and inputs to emphasise that in turn cause to have many efficient DMUs. Therefore, the main purpose of this study is to use the cross-efficiency method when suppliers offer volume discounts. A numerical example demonstrates the application of the proposed method.

Suggested Citation

  • Mahdi Mahdiloo & Abdollah Noorizadeh & Reza Farzipoor Saen, 2012. "Suppliers ranking by cross-efficiency evaluation in the presence of volume discount offers," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 11(3), pages 237-254.
    • Handle: RePEc:ids:ijsoma:v:11:y:2012:i:3:p:237-254
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    Cited by:

    1. Pankaj Dutta & Bharath Jaikumar & Manpreet Singh Arora, 2022. "Applications of data envelopment analysis in supplier selection between 2000 and 2020: a literature review," Annals of Operations Research, Springer, vol. 315(2), pages 1399-1454, August.

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