Vendor performance with supply risk: A chance-constrained Data Envelopment Analysis approach

Vendor performance with supply risk: A chance-constrained Data Envelopment Analysis approach

0.00 Avg rating0 Votes
Article ID: iaor20061716
Country: Netherlands
Volume: 100
Issue: 2
Start Page Number: 212
End Page Number: 222
Publication Date: Jan 2006
Journal: International Journal of Production Economics
Authors: , ,
Keywords: programming: nonlinear, statistics: data envelopment analysis
Abstract:

The strategic importance of vendor evaluation is well established in the purchasing literature. Several evaluation methodologies that consider multiple performance attributes have been proposed for vendor evaluation purposes. While these technologies range from scoring models that utilize prior articulation of weights to derive composite scores for vendors to advanced mathematical models, methods that incorporate the inherent variability in vendor's performance attributes have been limited. The primary reason for the lack of development of such models is due to the complexities associated with stochastic approaches. In order to more accurately evaluate the performance of vendors, it is critical to consider variability in vendor attributes. This paper is an attempt to fill this void in vendor evaluation models by presenting a chance-constrained data envelopment analysis (CCDEA) approach in the presence of multiple performance measures that are uncertain. Our paper effectively demonstrates the first application of CCDEA in the area of purchasing, in general, and vendor evaluation, in particular. The model is demonstrated by applying it to a previously reported dataset from a pharmaceutical company.

Reviews

Required fields are marked *. Your email address will not be published.