Browse > Article
http://dx.doi.org/10.11627/jkise.2014.38.1.83

Efficient Supplier Selection with Uncertainty Using Monte Carlo DEA  

Ha, Chunghun (School of Information and Computer Engineering, Hongik University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.38, no.1, 2015 , pp. 83-89 More about this Journal
Abstract
Selection of efficient supplier is a very important process as risk or uncertainty of a supply chain and its environment are increasing. Previous deterministic DEA and probabilistic DEAs are very limited to handle various types of risk and uncertainty. In this paper, I propose an improved probabilistic DEA which consists of two steps; Monte Carlo simulation and statistical decision making. The simulation results show that the proposed method is proper to distinguish supplier's performance and provide statistical decision background.
Keywords
Supplier Selection; Monte Carlo Simulation; Supply Chain Risk; Statistical Analysis;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Choi, T.Y. and Hartley, J.L., An exploration of supplier selection practices across the supply chain. J. Oper. Manag., 1996, Vol. 14, No. 4, pp. 333-343.   DOI
2 Cooper, W.W., Huang, Z., and Li, S.X., Satisficing DEA models under chance constraints. Ann. Oper. Res., 1996, Vol. 66, No. 4, pp. 279-295.   DOI
3 Ho, W., Xu, X., and Dey, P.K., Multi-criteria decision making approaches for supplier evaluation and selection : A literature review. Eur. J. Oper. Res., 2010, Vol. 202, No. 1, pp. 16-24.   DOI
4 Park, S.H., Design of Experiments, 2nd ed., Vol. 1, Seoul : Minyoungsa, 2003.
5 Talluri, S. and Narasimhan, R., Vendor evaluation with performance variability : a max-min approach. Eur. J. Oper. Res., 2003, Vol. 146, No. 3, pp. 543-552.   DOI
6 Talluri, S., Narasimhan, R., and Nair, A., Vendor performance with supply risk : A chance-constrained DEA approach. Int. J. Prod. Econ., 2006, Vol. 100, No. 2, pp. 212-222.   DOI
7 Tang, C.S., Perspectives in supply chain risk management. Int. J. Prod. Econ., 2006, Vol. 103, No. 2, pp. 451-488.   DOI
8 Weber, C.A., Current, J.R., and Benton, W.C., Vendor selection criteria and methods. Eur. J. Oper. Res., 1991, Vol. 50, No. 1, pp. 2-18.   DOI
9 Wu, T. and Blackhurst, J., Supplier evaluation and selection : an augmented DEA approach. Int. J. Prod. Res., 2009, Vol. 47, No. 16, pp. 4593-4608.   DOI
10 Wu, D. and Olson, D.L., Supply chain risk, simulation, and vendor selection. Int. J. Prod. Econ., 2008, Vol. 114, No. 2, pp. 646-655.   DOI
11 Bogetoft, P. and Otto, L., Benchmarking with DEA, SFA, and R, Vol. 157, Springer, 2010.
12 Braglia, M. and Petroni, A., A quality assurance-oriented methodology for handling trade-offs in supplier selection. Int. J. Phys. Distrib. Logist. Manag., 2000, Vol. 30, No. 2, pp. 96-112.   DOI
13 Carr, A.S. and Pearson, J.N., Strategically managed buyer-supplier relationships and performance outcomes. J. Oper. Manag., 1999, Vol. 17, No. 5, pp. 497-519.   DOI
14 Charnes, A., Cooper, W.W., and Rhodes, E., Measuring the efficiency of decision making units. Eur. J. Oper. Res., 1978, Vol. 2, No. 6, pp. 429-444.   DOI