Supplier Evaluation with Environmental Aspects and Common DEA Weights

Abstract

Supplier selection is an important business decision. Beside traditional management criteria the environmental aspects are getting often recognition. In this paper the method of Data Envelopment Analysis (DEA) is used to study the extension of traditional supplier selection methods with environmental factors. The focus will be on the weight selection process which can control the selection. In this method we divide the criteria in two manners: the traditional and environmental (green) factors. Then with the help of DEA we are searching a weight system with which the environmental criteria can influence the decision with a representation of the green factors. To choose the mentioned weight system, we apply DEA (Data Envelopment Analysis) with common weights analysis (CWA) method. In this case of DEA/CWA the common weights are calculated with a linear programming problem.