Analytic hierarchy process and data envelopment analysis methods based model proposal for improving supplier efficiencies and a case study

Abstract

With the continuous development of the information systems allowing faster data communication and providing an opportunity to work on big data, it is now more possible for enterprises to implement analytical approaches on decision-making processes. Following these advancements, a systematic approach that address supplier, enterprise, and customer factors to successfully deal with inputs, outputs and process management is required. To survive in competing markets, enterprises must improve themselves by considering not only their own system but also the entire supply chain. Factors affecting the overall performance of the supply chains and the evaluation of the success criteria of all actors have become a part of sustainability. In the content of this study, self-evaluation of suppliers made with the help of Analytic Hierarchy Process (AHP) and a decision model based on Data Envelopment Analysis (DEA) for improvement of suppliers' efficiencies has been developed. The proposed model has been applied to evaluate the performances of suppliers of an enterprise in the textile industry. According to the findings obtained from the DEA method, evaluations for the improvement of suppliers are presented.