TY - JOUR
T1 - The most cost efficient automotive vendor with price uncertainty
T2 - A new DEA approach
AU - Toloo, Mehdi
AU - Ertay, Tijen
N1 - Funding Information:
The research was supported by the Czech Science Foundation (GACR project 14-31593S) and through European Social Fund within the project CZ.1.07/2.3.00/20.0296.
PY - 2014/6
Y1 - 2014/6
N2 - Vendor's performance evaluation is an important subject which has strategic implications for managing an efficient company. However, there are many important criteria for prospering company. These criteria may contradict together. In other words, while a criterion is improved, the other may worsen. Indeed, similar to manufacturing manager in global market, purchasing manager who has significant practical implications deals with this issue. The vendor selection problem (VSP) is obviously affected by the complexity and uncertainty due to the lack of information associated with related business environment of countries in a global market. On the other hand, in the automotive industry which plays an important role in the worldwide market, these decisions will be exacerbated by increasing the outsourcing and opportunities. There are varieties of techniques, from simple weighted scoring methods to complex mathematical programming, for handling VSP. In this study, we propose a new cost efficiency data envelopment analysis (CE-DEA) approach with price uncertainty for finding the most cost efficient unit. Potential uses are then illustrated with an application to automotive industry involving 73 vendors in Turkey.
AB - Vendor's performance evaluation is an important subject which has strategic implications for managing an efficient company. However, there are many important criteria for prospering company. These criteria may contradict together. In other words, while a criterion is improved, the other may worsen. Indeed, similar to manufacturing manager in global market, purchasing manager who has significant practical implications deals with this issue. The vendor selection problem (VSP) is obviously affected by the complexity and uncertainty due to the lack of information associated with related business environment of countries in a global market. On the other hand, in the automotive industry which plays an important role in the worldwide market, these decisions will be exacerbated by increasing the outsourcing and opportunities. There are varieties of techniques, from simple weighted scoring methods to complex mathematical programming, for handling VSP. In this study, we propose a new cost efficiency data envelopment analysis (CE-DEA) approach with price uncertainty for finding the most cost efficient unit. Potential uses are then illustrated with an application to automotive industry involving 73 vendors in Turkey.
KW - Automotive industry
KW - Cost efficiency
KW - Data envelopment analysis
KW - Price uncertainty
KW - Vendor selection
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U2 - 10.1016/j.measurement.2014.03.002
DO - 10.1016/j.measurement.2014.03.002
M3 - Article
AN - SCOPUS:84898069526
SN - 0263-2241
VL - 52
SP - 135
EP - 144
JO - Measurement: Journal of the International Measurement Confederation
JF - Measurement: Journal of the International Measurement Confederation
IS - 1
ER -