Green supplier selection using a common weights analysis of DEA and EOQ types of order allocation

Abstract

This paper offers a solution to the supplier selection problem and the problem of lot‐sizing decisions. Data Envelopment Analysis (DEA) is seldom applied to help solve multilevel supplier selection problems. The order allocation problem is reformulated as a linear programming problem in a novel way. First, a Data Envelopment Analysis/common weights model (DEA/CWA) is introduced to help define the supplier pool of capable suppliers. Selection criteria include management and green criteria. In a second phase, a nonlinear mathematical programing model is offered to determine capacity distribution among selected suppliers. A numerical example is provided to support the theoretical model.

Green supplier selection problems with data scaling and production frontier estimations in a DEA model

“…and artificial intelligence methods (case-based reasoning, neural network, decision tree, association rules, cluster analysis) were used (Setak et al 2012) along with qualitative methods (Zimmer et al 2016). This paper will highlight DEA as one of the most frequently used techniques of supplier evaluation (Ho et al 2010;Soheilirad et al 2018;Sultana et al 2016;Vörösmarty À Dobos 2021). DEA was first proposed by Charnes et al (1978); it is a mathematical programming method for assessing the relative efficiency of homogenous decision making units (DMU).…”

“…This model interprets the inventory costs on the basis of the classic EOQ, i.e. it consists of two cost elements: inventory and order cost (Dobos À Vörösmarty 2021). The supplier is often unable to deliver the optimal batch size, so the purchasing manager should know the effectiveness of the proposed batch size.…”

An integrated decision-making approach for global supplier selection and order allocation to create an environment-friendly supply chain

“…Babbar and Amin (2018) utilized a two-stage quality function deployment (QFD) and a stochastic multi-objective mathematical approach for green SS&OA based on qualitative and quantitative green criteria. Dobos and V€ or€ osmarty (2021) used data envelopment analysis and a non-linear programming model to evaluate the green suppliers and allocate the appropriate order amount among selected suppliers. In the shared-bike case study, Liu and Gao (2021) presented a new method for assessing green suppliers.…”

Strategic stocking for new products to signal quality information

“…Our paper also relates to the inventory management, which has been viewed as a central issue in operation management. The documented reasons for holding inventory focus on the economics of matching supply and demand (Anupindi et al, 2006; Dobos & Vörösmarty, 2020; Lee & Billington, 1992; Pan et al, 2020), production scale (Hofer et al, 2012; Schwartz & Rivera, 2010), hedge (Caldentey & Haugh, 2006; Gaur & Seshadri, 2005; Kouvelis et al, 2013), and buffer per the theory of constraints (Koziol, 1988; Tsou, 2013). However, some papers also explore other implications of inventory.…”