A flexible cross-efficiency fuzzy data envelopment analysis model for sustainable sourcing

Abstract

Sustainable sourcing is a recent priority for firms considering customer behavior and societal norms with respect to the supply chain. Customer attitudes, particularly in the developed countries, are affected by the perceived sustainability of products or services regarding environmental, social and economic aspects. Seeking to maximize their market shares, firms frequently require an effective sourcing approach in supply chain management (SCM) by selecting sustainable suppliers (sourcing) and by enforcing standards through continuous supplier evaluations (monitoring) as well as by contract adjustments (retention). Most existing sourcing methodologies are either cost-oriented or ad hoc, without the tools and techniques necessary to deal with sustainability. In this paper, we propose a product-based framework for sustainable supplier sourcing considering different sustainability, operational and organizational criteria based on the type of outsourced products in the evaluation process. We develop a flexible cross-efficiency evaluation methodology based on data envelopment analysis (DEA) for identifying supplier performance. This research also uses fuzzy set theory to tackle the vagueness of information that is often present in the information-gathering step. We present a case study from the semiconductor industry to demonstrate the applicability of the proposed model and the efficacy of the procedures and algorithms.