Applications of Data Envelopment Analysis in Supplier Selection

This paper delves into applying Data Envelopment Analysis (DEA) in supplier selection. DEA, a non-parametric mathematical programming technique, is employed to evaluate the relative efficiency of suppliers based on multiple input and output criteria. The study commences with a comprehensive literature review that explores the theoretical underpinnings of DEA and its application in supplier selection. Subsequently, the methodology section outlines the step-by-step process of implementing DEA in supplier evaluation, including identifying relevant input and output variables, data collection, and model formulation. The numerical results section presents a case study illustrating the application of DEA to a hypothetical supplier selection problem. The findings demonstrate the effectiveness of DEA in ranking suppliers based on their overall efficiency and identifying potential areas for improvement. The conclusion summarizes the paper s key contributions and discusses the implications of DEA for strategic supplier management. The paper concludes by highlighting potential avenues for future research in this domain.