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Benchmarking suppliers’ performance when some factors play the role of both inputs and outputs : A new development to the slacks-based measure of efficiency

Mahdi Mahdiloo (Department of International Business and Asian Studies, Griffith Business School, Gold Coast Campus, Griffith University, Brisbane, Australia)
Abdollah Noorizadeh (Department of Industrial Management, Lappeenranta University of Technology, Lappeenranta, Finland)
Reza Farzipoor Saen (Department of Industrial Management, Karaj Branch, Islamic Azad University, Karaj, Iran)

Benchmarking: An International Journal

ISSN: 1463-5771

Article publication date: 29 July 2014

790

Abstract

Purpose

The purpose of this paper is to develop a slack-based measure (SBM) model in the presence of dual-role factor. Then it is applied in supplier selection problem.

Design/methodology/approach

The developed model in this paper is based on data envelopment analysis (DEA) technique.

Findings

The proposed evaluation platform is capable of identifying ill-performing suppliers which seek to future improvement. The findings provide valuable insights for practitioners, as well as academicians, policy makers and also integrate selection criteria under the supply chain.

Originality/value

This is the first time that a non-radial DEA model considers dual-role factors. The proposed model does not deal with dual-role factor as a non-discretionary factor. The proposed model considers dual-role factors on both the input and output sides in a similar manner. The proposed model can fully measure the inefficiency of suppliers. The proposed model can give a complete ranking of suppliers.

Keywords

Acknowledgements

The authors wish to thank two anonymous reviewers for valuable suggestions and comments.

Citation

Mahdiloo, M., Noorizadeh, A. and Farzipoor Saen, R. (2014), "Benchmarking suppliers’ performance when some factors play the role of both inputs and outputs : A new development to the slacks-based measure of efficiency", Benchmarking: An International Journal, Vol. 21 No. 5, pp. 792-813. https://doi.org/10.1108/BIJ-10-2012-0068

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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