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Developing a New Theory of Integer-Valued Data Envelopment Analysis for Supplier Selection in the Presence of Stochastic Data

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  • Majid Azadi

    (Department of Industrial Management, Karaj Branch, Islamic Azad University, Karaj, Iran)

  • Reza Farzipoor Saen

    (Department of Industrial Management, Karaj Branch, Islamic Azad University, Karaj, Iran)

Abstract

Supplier selection has a strategic importance for every company. Hybrid integer data is one of the models in data envelopment analysis (DEA). In many real world applications, data are often stochastic. A successful approach to address uncertainty in data is to replace deterministic data via random variables, leading to chance-constrained DEA. In this paper, a chance-constrained hybrid integer data envelopment analysis (CCHIDEA) model is developed and also its deterministic equivalent which is a nonlinear program is derived. Furthermore, it is shown that the deterministic equivalent of the CCHIDEA model can be converted into a quadratic program. In addition, sensitivity analysis of the CCHIDEA model is discussed with respect to changes on parameters. Finally, a case study demonstrates the application of the proposed model.

Suggested Citation

  • Majid Azadi & Reza Farzipoor Saen, 2014. "Developing a New Theory of Integer-Valued Data Envelopment Analysis for Supplier Selection in the Presence of Stochastic Data," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 7(3), pages 80-103, July.
    • Handle: RePEc:igg:jisscm:v:7:y:2014:i:3:p:80-103
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