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Abstract
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This paper delves into applying Data Envelopment Analysis (DEA) in supplier
selection. DEA, a non-parametric mathematical programming technique, is
employed to evaluate the relative efficiency of suppliers based on multiple input and
output criteria. The study commences with a comprehensive literature review that
explores the theoretical underpinnings of DEA and its application in supplier
selection. Subsequently, the methodology section outlines the step-by-step process
of implementing DEA in supplier evaluation, including identifying relevant input and
output variables, data collection, and model formulation. The numerical results
section presents a case study illustrating the application of DEA to a hypothetical
supplier selection problem. The findings demonstrate the effectiveness of DEA in
ranking suppliers based on their overall efficiency and identifying potential areas for
improvement. The conclusion summarizes the paper's key contributions and
discusses the implications of DEA for strategic supplier management. The paper
concludes by highlighting potential avenues for future research in this domain.
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