Restricting weights in supplier selection decisions in the presence of dual-role factors

Abstract

One of the uses of data envelopment analysis (DEA) is supplier selection. Weight restrictions allow for the integration of managerial preferences in terms of relative importance levels of various inputs and outputs. As well, in some situations there is a strong argument for permitting certain factors to simultaneously play the role of both inputs and outputs. The objective of this paper is to propose a method for selecting the best suppliers in the presence of weight restrictions and dual-role factors. This paper depicts the supplier selection process through a DEA model, while allowing for the incorporation of decision maker’s preferences and considers multiple factors which simultaneously play both input and output roles. The proposed model does not demand exact weights from the decision maker. This paper presents a robust model to solve the multiple-criteria problem. A numerical example demonstrates the application of the proposed method.