Use of DEA approach to Selecting Best Supplier (ACE)

In the competitive trade world, choosing the best supply chain is a vital problem. One of the most important processes performed in enterprises today is the evaluation, selection and continuous measurement of suppliers. In this paper we want to use advanced cross-efficiency (ACE) to select best supplier. Recently, Jahanshahloo et al. [Jahanshahloo G.R., Hosseinzadeh Lotfi F., Jafari Y., Maddahi R., Selecting symmetric weights as a secondary goal in DEA cross-efficiency evaluation, Applied Mathematical Modelling 53, (1122), 355–355] proposed the use of symmetric weights for computing the elements of cross-efficiency matrix. In spite of fact that the proposed method decreases the number of zero weights, a large number of zero weights among input and output symmetric weights may still exist. To this end, this paper improves the proposed secondary goal model. The improved method generates more acceptable results in the ranking process of the decision-making units (DMUs). Finally, a numerical example is provided to illustrate the applicability of the proposed method to find best supplier

Keywords:

DEA , symmetric weights , secondary goal , cross-efficiency