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How to assess sustainability of suppliers in the presence of volume discount and negative data in data envelopment analysis?

Author

Listed:
  • Mohammad Izadikhah

    (Islamic Azad University)

  • Reza Farzipoor Saen

    (Islamic Azad University)

  • Razieh Roostaee

    (Islamic Azad University)

Abstract

Supplier selection is an important decision-making problem in supply chain management. Selecting appropriate suppliers based on sustainability criteria including economic, environmental, and social criteria can help companies move toward sustainable development. Data envelopment analysis (DEA) is applied to recognize the most sustainable supplier. However, conventional DEA models can be applied only to performance measurement systems characterized by positive input–output data. However, in real world, data can be negative. We propose a new DEA model for evaluating sustainability of suppliers in presence of negative data and volume discounts. Also, we present a super-efficiency model for ranking suppliers. In addition, we prove some main properties of our proposed method. Finally, we present a case study to demonstrate applicability of proposed model.

Suggested Citation

  • Mohammad Izadikhah & Reza Farzipoor Saen & Razieh Roostaee, 2018. "How to assess sustainability of suppliers in the presence of volume discount and negative data in data envelopment analysis?," Annals of Operations Research, Springer, vol. 269(1), pages 241-267, October.
    • Handle: RePEc:spr:annopr:v:269:y:2018:i:1:d:10.1007_s10479-018-2790-6
    DOI: 10.1007/s10479-018-2790-6
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    Cited by:

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    3. Katerina Fotova Čiković & Ivana Martinčević & Joško Lozić, 2022. "Application of Data Envelopment Analysis (DEA) in the Selection of Sustainable Suppliers: A Review and Bibliometric Analysis," Sustainability, MDPI, vol. 14(11), pages 1-30, May.
    4. Zohreh Sadeghi & Reza Farzipoor Saen & Mahdi Moradzadehfard, 2022. "RETRACTED ARTICLE: Developing a network data envelopment analysis model for appraising sustainable supply chains: a sustainability accounting approach," Operations Management Research, Springer, vol. 15(3), pages 809-824, December.
    5. Pankaj Dutta & Bharath Jaikumar & Manpreet Singh Arora, 2022. "Applications of data envelopment analysis in supplier selection between 2000 and 2020: a literature review," Annals of Operations Research, Springer, vol. 315(2), pages 1399-1454, August.
    6. Lin, Sheng-Wei & Lu, Wen-Min, 2024. "Using inverse DEA and machine learning algorithms to evaluate and predict suppliers’ performance in the apple supply chain," International Journal of Production Economics, Elsevier, vol. 271(C).
    7. Grigoris Giannarakis & Andreas Andronikidis & Nikolaos Sariannidis, 2020. "Determinants of environmental disclosure: investigating new and conventional corporate governance characteristics," Annals of Operations Research, Springer, vol. 294(1), pages 87-105, November.
    8. Kao, Chiang, 2020. "Measuring efficiency in a general production possibility set allowing for negative data," European Journal of Operational Research, Elsevier, vol. 282(3), pages 980-988.

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