The most efficient supplier selection with mixed-integer two-stage data envelopment analysis model

Abstract

Supplier selection is one of the most important strategic issues in supply chain management and plays a key role in an organization. Selecting a suitable supplier is one of the most important decisions of the purchasing department; and this decision is usually based on various criteria. In this study, a mixed-integer data envelopment analysis model is proposed to evaluate and select the best (most efficient) supplier with input, intermediate and output in a supply chain structure expressed as a two-stage production process The proposed model was applied to the problem of selecting the suppliers of both the plastic packing strap industry and the suppliers of the resin manufacturers and the performance of the model was compared with the other studies. The results show that the proposed mixed-integer two-stage model facilitates the decision-maker's choice of supplier.