Purpose
– The purpose of this paper is to develop a slack-based measure (SBM) model in the presence of dual-role factor. Then it is applied in supplier selection problem.
Design/methodology/approach
– The developed model in this paper is based on data envelopment analysis (DEA) technique.
Findings
– The proposed evaluation platform is capable of identifying ill-performing suppliers which seek to future improvement. The findings provide valuable insights for practitioners, as well as academicians, policy makers and also integrate selection criteria under the supply chain.
Originality/value
– This is the first time that a non-radial DEA model considers dual-role factors. The proposed model does not deal with dual-role factor as a non-discretionary factor. The proposed model considers dual-role factors on both the input and output sides in a similar manner. The proposed model can fully measure the inefficiency of suppliers. The proposed model can give a complete ranking of suppliers.
Supply chain includes all activities associated with the flow and transformation of goods from the raw material stage through to the end user. Supplier selection is one of the most important parts of supply chain management (SCM). For selecting suppliers, data envelopment analysis (DEA), as a multiple criteria decision making tool, has been applied for several times. However, sometimes in supplier selection problem, there may exist some criteria that are beyond the control of a management. These criteria are called non-discretionary or exogenously fixed factors. Since in traditional treatment of non-discretionary inputs in DEA, free reign is given when deciding for each decision making unit (DMU) which outputs and inputs to emphasise, many different avenues are present by which a DMU can appear efficient. Therefore, it is common to have many DMUs that are relatively efficient. In addition, since each DMU has its own set of weights, all of its weight might be put on a single output and input. As a result, the objective of this paper is to propose a crossefficiency model which is able to consider non-discretionary inputs. A numerical example demonstrates the application of the proposed model in supplier selection context.
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