Benchmarking suppliers’ performance when some factors play the role of both inputs and outputs: A new development to the slacks-based measure of efficiency

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 -...

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Bibliographic Details
Published in:Benchmarking : an international journal 2014-01, Vol.21 (5), p.792-813
Main Authors: Mahdiloo, Mahdi, Noorizadeh, Abdollah, Farzipoor Saen, Reza
Format: Article
Language:English
Subjects:
Benchmarking
Component and supplier management
Criteria
Design engineering
Mathematical models
Operations research
Platforms
Suppliers
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Summary: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.
ISSN:1463-5771
DOI:10.1108/BIJ-10-2012-0068