A hybrid method of grey relational analysis and data envelopment analysis for evaluating and selecting efficient suppliers plus a novel ranking method for grey numbers
Abstract: Evaluation and
selection of efficient suppliers is one of the key issues in supply chain
management which depends on wide range of qualitative and quantitative
criteria. The aim of this research is to develop a mathematical model for
evaluating and selecting efficient suppliers when faced with supply and demand
uncertainties.
Design/methodology/approach: In this research Grey Relational Analysis
(GRA) and Data Envelopment Analysis (DEA) are used to evaluate and select
efficient suppliers under uncertainties. Furthermore, a novel ranking method is
introduced for the units that their efficiencies are obtained in the form of
interval grey numbers.
Findings: The study indicates that the proposed model in addition to
providing satisfactory and acceptable results avoids time-consuming
computations and consequently reduces the solution time. To name another
advantage of the proposed model, we can point out that it enables us to make
decision based on different levels of risk.
Originality/value: The paper presents a mathematical model for evaluating
and selecting efficient suppliers in a stochastic environment so that companies
can use in order to make better decisions.
Keywords: Efficient suppliers,
Grey Relational Analysis, Data Envelopment Analysis, Ranking Method, Grey
Numbers
Author: Mohsen Sayyah Markabi,
Mohammad Sabbagh
Journal Code: jptindustrigg140030
