Supplier selection among alternative scenarios by Data envelopment analysis

Abstract

A considerable problem in competitive trade world is choosing the best supply chain. As a result in much more serious circumstances of competitions looking for the best supplier for manufacturing, for preparing raw material, is very significant. Meantime suppliers have different scenarios to be fulfilled, such as changing selection variables like lead-time, transportation cost and transportation path. In this paper a mathematical model using Data Envelopment Analysis (DEA) technique and binary algorithm for selecting suppliers with different scenarios is used which can evaluate suppliers with variable preferences and replacement for other suppliers.<br />A considerable problem in competitive trade world is choosing the best supply chain. As a result in much more serious circumstances of competitions looking for the best supplier for manufacturing, for preparing raw material, is very significant. Meantime suppliers have different scenarios to be fulfilled, such as changing selection variables like lead-time, transportation cost and transportation path. In this paper a mathematical model using Data Envelopment Analysis (DEA) technique and binary algorithm for selecting suppliers with different scenarios is used which can evaluate suppliers with variable preferences and replacement for other suppliers.