A Multi Objective Approach to Supplier Evaluation using Multiple Criteria Data Envelopment Analysis (MCDEA)



The aim of this paper is to evaluate suppliers using a Multi Objective Programming Problem and Multiple Criteria Data Envelope Analysis. Toward accomplishing this goal, first a general algorithm is introduced to obtain a continuous set of efficient solutions of the given Multi Objective Programming Problem. Then, since each member of such set can be viewed as a combination of inputs such as raw material for purchasing firm, outputs level of the firm corresponding to the specific combinations of the inputs are estimated. Finally, based on these inputs and outputs, the efficiency of the purchasing firm is computed by applying Multiple Criteria DEA. So the number of suppliers and order allocation among them are determined in a way that maximizes the DEA efficiency of the firm.