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

Author

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  • Mohammad Izadikhah

    (Department of Mathematics, College of Science, Arak Branch, Islamic Azad University, Arak, Iran)

  • Reza Farzipoor Saen

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

  • Kourosh Ahmadi

    (Department of EMBA, Faculty of Management, Arak Branch, Islamic Azad University, Arak, Iran)

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.

Suggested Citation

  • Mohammad Izadikhah & Reza Farzipoor Saen & Kourosh Ahmadi, 2017. "How to Assess Sustainability of Suppliers in the Presence of Dual-Role Factor and Volume Discounts? A Data Envelopment Analysis Approach," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(03), pages 1-25, June.
    • Handle: RePEc:wsi:apjorx:v:34:y:2017:i:03:n:s0217595917400164
    DOI: 10.1142/S0217595917400164
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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.
    2. Mohammad Izadikhah & Elnaz Azadi & Majid Azadi & Reza Farzipoor Saen & Mehdi Toloo, 2022. "Developing a new chance constrained NDEA model to measure performance of sustainable supply chains," Annals of Operations Research, Springer, vol. 316(2), pages 1319-1347, September.
    3. Sebastian Lozano & Belarmino Adenso-Diaz, 2018. "Network DEA-based biobjective optimization of product flows in a supply chain," Annals of Operations Research, Springer, vol. 264(1), pages 307-323, May.
    4. Mohammad Izadikhah & Reza Farzipoor Saen & Razieh Roostaee, 2018. "How to assess sustainability of suppliers in the presence of volume discount and negative data in data envelopment analysis?," Annals of Operations Research, Springer, vol. 269(1), pages 241-267, October.
    5. Mohammad Izadikhah & Reza Farzipoor Saen, 2020. "Ranking sustainable suppliers by context-dependent data envelopment analysis," Annals of Operations Research, Springer, vol. 293(2), pages 607-637, October.
    6. Pierpaolo D’Urso & Livia Giovanni & Marta Disegna & Riccardo Massari & Vincenzina Vitale, 2021. "A Tourist Segmentation Based on Motivation, Satisfaction and Prior Knowledge with a Socio-Economic Profiling: A Clustering Approach with Mixed Information," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(1), pages 335-360, February.
    7. Tavana, Madjid & Izadikhah, Mohammad & Toloo, Mehdi & Roostaee, Razieh, 2021. "A new non-radial directional distance model for data envelopment analysis problems with negative and flexible measures," Omega, Elsevier, vol. 102(C).
    8. Khoshroo, Alireza & Izadikhah, Mohammad & Emrouznejad, Ali, 2022. "Total factor energy productivity considering undesirable pollutant outputs: A new double frontier based malmquist productivity index," Energy, Elsevier, vol. 258(C).
    9. Mohammad Izadikhah & Reza Farzipoor Saen, 2019. "Solving voting system by data envelopment analysis for assessing sustainability of suppliers," Group Decision and Negotiation, Springer, vol. 28(3), pages 641-669, June.
    10. Bohlool Ebrahimi & Madjid Tavana & Andreas Kleine & Andreas Dellnitz, 2021. "An epsilon-based data envelopment analysis approach for solving performance measurement problems with interval and ordinal dual-role factors," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(4), pages 1103-1124, December.
    11. Ana Paula Lopes & Nuria Rodriguez-Lopez, 2021. "A Decision Support Tool for Supplier Evaluation and Selection," Sustainability, MDPI, vol. 13(22), pages 1-17, November.
    12. De Clercq, Djavan & Wen, Zongguo & Caicedo, Luis & Cao, Xin & Fan, Fei & Xu, Ruifei, 2017. "Application of DEA and statistical inference to model the determinants of biomethane production efficiency: A case study in south China," Applied Energy, Elsevier, vol. 205(C), pages 1231-1243.
    13. Katerina Fotova Čiković & Ivana Martinčević & Joško Lozić, 2022. "Application of Data Envelopment Analysis (DEA) in the Selection of Sustainable Suppliers: A Review and Bibliometric Analysis," Sustainability, MDPI, vol. 14(11), pages 1-30, May.

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