Ranking sustainable suppliers by context-dependent data envelopment analysis
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Ranking sustainable suppliers by context‑dependent data envelopment analysis Mohammad Izadikhah1 · Reza Farzipoor Saen2
© Springer Science+Business Media, LLC, part of Springer Nature 2019
Abstract Sustainable supplier selection is one of the most critical activities for establishing an effective sustainable supply chain and is typically a multi-criteria decision-making problem. One of the important ways for evaluating sustainable suppliers is to use data envelopment analysis (DEA) models. There are many DEA models for ranking decision making units (DMUs) that are applicable for selecting the best sustainable suppliers. This paper presents a new DEA model for ranking DMUs (suppliers) based on a modification of contextdependent DEA models. Using the concept of attractiveness and progress for each supplier, this paper suggests a new DEA ranking approach. The proposed method is able to rank all efficient and inefficient suppliers. A case study demonstrates the efficiency of the proposed method. Our proposed method is used to determine the most sustainable suppliers of Sazeh Gostare Saipa Company. There are fourteen active suppliers for Sazeh Gostare Saipa Co., and results show that Hydraulic Structures Engineering Services is the most sustainable supplier. Keywords Data envelopment analysis (DEA) · Context-dependent data envelopment analysis · Ranking · Global attractiveness · Global progress · Sustainable supplier selection
1 Introduction Supplier selection is one of the most critical issues in supply chain management (SCM). Nowadays, in competitive markets, suppliers play an influential role in SCM as companies have to respond to customers’ requirements quickly and precisely. The main aim of SCM is to increase the customer satisfaction level. Another main aim of SCM is to increase
* Reza Farzipoor Saen [email protected]
Mohammad Izadikhah m‑izadikhah@iau‑arak.ac.ir; [email protected]
1
Department of Mathematics, College of Science, Arak Branch, Islamic Azad University, Arak, Iran, P. O. Box: 38135/567
2
Department of Industrial Management, Faculty of Management and Accounting, Karaj Branch, Islamic Azad University, Karaj, Iran, P. O. Box: 31485‑313
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Vol.:(0123456789)
Annals of Operations Research
the level of trust of buyers on their suppliers (Ballew and Schnorbus 1994; Handfield and Nichols 1999). There are many supplier selection methods in the literature. In these days, given knowledge growth of sustainability of firms, the sustainable supplier selection is the main component of sustainable supply chain management (Molamohamadi et al. 2013). The subject of sustainability has turned the supplier selection problem a complex issue. Tseng and Chiu (2013) presented a new methodology using grey relational analysis by determining proper environmental and non-environmental criteria for SCM sustainability. Gimenez and Tachizawa (2012); Hervani et al. (2005) showed that assessing the sustainability of supply chains can be used in many areas such as supplier selection, performance monitoring,
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