The DEA Game Cross-efficiency Model for Supplier Selection Problem under Competition

Abstract

As the most important responsibility of purchasing management, the problem of supplier evaluation and selection has always received a great deal of attention from practitioners and researcher s. This management decision is a challenge due to the complexity and various criteria involved. Many methods based on data envelopment analysis(DEA) emerged, especially the cross efficiency. But it exists some limitations, such as the cross efficiency value is often non-un ique, average cross efficiency measure is not good because it is not pareto solution. This paper considers the competition between the su ppliers and presents game cross efficiency which is based on DEA to assess supplier performance. This method can get a unique efficiency and it is pareto solution. Numerical example is used to illustrate application and feasibility of the proposed methodology.