A Hybrid Decision-making System Using Data Envelopment Analysis and Fuzzy Models for Supplier Selection in the Presence of Multiple Decision Makers

Nowadays, improving the competitive condition of organizations greatly depends upon the process of outsourcing. Raw materials, products, services, or some parts of the organization activities can be outsourced. Thus, the process of outsourcing is regarded as a strategic decision. At the same time, the first step after making decision on outsourcing is selecting the appropriate supplier in the given area. Due to the importance of this issue, so far many extensive studies have been conducted on offering appropriate solutions to the problem of supplier selection. In this paper, a hybrid system consisting of Data Envelopment Analysis (DEA) and group decision making based on fuzzy models is proposed for solving the problem of supplier selection. In this hybrid system, first the weights of the criteria are obtained from every decision maker as fuzzy numbers and group decision making, and after being integrated, they are incorporated into the DEA model using the concept of intersection in fuzzy numbers. Then, DEA model is solved through Assurance Region (AR) method in order to select the best supplier.