A joint measurement of efficiency and effectiveness for the best supplier selection using integrated data envelopment analysis approach

Abstract

Selecting a superior supplier is one of the most important tasks in supply chain management (SCM) which requires effective purchasing strategies. Thus, purchasing departments are looking for the kind of strategies in which can determine the efficiency and effectiveness of suppliers. This paper proposes a model for measuring efficiency, effectiveness, and the overall efficiency of suppliers in supply chain management. In addition, to rank suppliers, this paper proposes a novel super-efficiency formulation of data envelopment analysis (DEA). A numerical example addresses the applicability of the proposed model in supplier ranking context.