A decision support system based on data envelopment analysis models to determine qualified suppliers

Appropriate suppliers selection has an important role in reducing costs, increasing competitiveness and the share of market and improving customers satisfaction. Also, the development of partnership with suppliers is widely identified today as a strong tool for supply chain improvement. To develop an impressive partnership, it is imperative to have a small supply base and an endeavor to reduce the supply base to a manageable level. Despite its overwhelming importance, the models and studies of supply base reduction are rare. Hence, the use of accurate and efficient techniques for the process of reducing the set of all suppliers to a smaller set of qualified suppliers is clear. Therefore, to determine qualified suppliers, a decision support system is presented using Data Envelopment Analysis – Discernment Analysis method, so that its initial classification is done using Data Envelopment Analysis with Paired Comparisons – Improved Principal Components Analysis method in this research. Finally, the proposed methodology performance is examined by using a numerical example.

Keywords:

Suppliers selection , Qualified suppliers , Data Envelopment Analysis – Discernment Analysis method , Data Envelopment Analysis with Paired Comparisons – Improved Principal Components Analysis method