OR Insight

, Volume 24, Issue 1, pp 31–48

Developing a WPF-CCR model for selecting suppliers in the presence of stochastic data

Original Article

DOI: 10.1057/ori.2010.16

Cite this article as:
Azadi, M. & Saen, R. OR Insight (2011) 24: 31. doi:10.1057/ori.2010.16

Abstract

In recent years, determining an appropriate supplier has become a crucial strategic consideration in a competitive market – with data envelopment analysis (DEA) methods increasingly important in this respect. DEA traditionally requires that the values for all inputs and outputs be known exactly. However, this assumption may not be true, because data in many real applications cannot be precisely measured. A successful approach for addressing uncertainty in data is to replace deterministic data with random variables, leading to chance-constrained DEA. In this article, the concept of chance-constrained programming is used to develop a Worst-practice frontier-Charnes-Cooper-Rhodes model and also its deterministic equivalent. Furthermore, it is shown that the latter can be formulated as a quadratic program. Finally, a numerical example demonstrates the application of the proposed model.

Keywords

supplier selection chance-constrained data envelopment analysis (CCDEA) worst-practice frontier 

Copyright information

© Operational Research Society 2011

Authors and Affiliations

  1. 1.Faculty of Economics and Management, Islamic Azad University – Science and Research BranchTehranIran
  2. 2.Department of International Business and Asian StudiesGold Coast campus, Griffith UniversityGold CoastAustralia

Personalised recommendations