Evaluating the Performance of the Suppliers Using Hybrid DEA-OPA Model: A Sustainable Development Perspective

One of the most important activities in any organization is the identification and selection of the right supplier. The responsible organizations determine the performance of their potential suppliers based on the attributes that are aligned with their sustainable development goals. Data regarding these attributes can be qualitative and/or quantitative, and not every supplier selection methodology can handle them simultaneously. Data envelopment analysis (DEA) is an influential methodology for measuring the suppliers' performance, especially when there are more than one input and/or output. However, the original DEA model cannot consider human judgment during evaluation. In this regard, the current study proposes a novel methodology with the aid of the Ordinal Priority Approach (OPA) of multiple attributes decision-making and the DEA. The proposed method, the DEA-OPA model, truly enjoys the advantages of both DEA and OPA models, making it more powerful than the original DEA for performance measurement. The proposed model was compared with the original DEA and OPA then retested through incomplete data when the experts lack enough knowledge about inputs and outputs. Finally, a pilot application has been executed in the paper industry, and comprehensive sensitivity analysis has been performed to illustrate the feasibility of the proposed model. The findings are of significant importance to responsible enterprises and organizational decision-makers.

Automated summary

The study introduces a DEA-OPA model that combines the Ordinal Priority Approach from multi-attribute decision-making with Data Envelopment Analysis, offering a more powerful performance evaluation tool for suppliers compared to the original DEA model. A pilot application in the paper industry and comprehensive sensitivity analysis demonstrate the feasibility of the proposed model.