Supplier evaluation and selection through DEA-AHP-GRA integrated approach- A case study

Abstract

Supplier evaluation and selection play a vital role in establishing an effective supply chain for any firm. The supplier evaluation not only enables the firm to know the performance of suppliers, but also gives an indication of the ability of the firm itself to gain competitive advantage. The appropriate evaluation is the basis for the subsequent selection of the best supplier. This paper presents a hybrid methodology using Data Envelopment Analysis (DEA), Analytic Hierarchy Process (AHP) and Grey Relational Analysis (GRA) to evaluate suppliers and to identify the best supplier for a firm. In this work, super efficiency and cross efficiency methods of DEA are employed to determine the efficiencies and the performance scores of the suppliers respectively. On the basis of super efficiency and cross efficiency scores, the list of efficient suppliers with high performance is identified and GRA methodology is adopted to identify the best supplier. A case study is presented to demonstrate the proposed hybrid methodology.Growing Science Ltd. All rights reserved. 7