Article ID: | iaor20091045 |
Country: | United Kingdom |
Volume: | 46 |
Issue: | 8 |
Start Page Number: | 2313 |
End Page Number: | 2327 |
Publication Date: | Jan 2008 |
Journal: | International Journal of Production Research |
Authors: | Olson David L., Wu Desheng |
Keywords: | statistics: data envelopment analysis, simulation: applications |
Vendor selection involves decisions balancing a number of conflicting criteria. Data envelopment analysis (DEA) is a mathematical programming approach capable of identifying non-dominated solutions, as well as assessing relative efficiency of dominated solutions. A simple multi-attribute utility function can be applied to a small set of alternatives, providing a tool to assess relative value, but is subject to error if estimated measures are not precise. This paper compares stochastic DEA with a multiple-criteria model in a vendor selection model involving multiple criteria, reporting simulation experiments varying the degree of uncertainty involved in model parameters.