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Performance measurement for green supplier selection based on data envelopment analysis.

Xia Yan1, Xi Bao2, Rongqing Zhao1

  • 1School of Economics and Management, Southwest University of Science and Technology, Mianyang, 621010, China.

Environmental Science and Pollution Research International
|February 14, 2022
PubMed
Summary
This summary is machine-generated.

This study introduces a new Data Envelopment Analysis (DEA) method for selecting green suppliers. The improved model effectively evaluates management and environmental performance, aiding sustainable business decisions.

Keywords:
Data envelopment analysisGreen efficiencyGreen supplier selectionManagement efficiencyPerformance measurementUndesirable outputs

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Area of Science:

  • Operations Research
  • Environmental Management
  • Supply Chain Management

Background:

  • Growing emphasis on sustainable development necessitates robust green supplier selection methods.
  • Existing literature often categorizes supplier performance indicators into management and green criteria.
  • Data Envelopment Analysis (DEA) is a recognized technique for multi-criteria decision-making and performance evaluation.

Purpose of the Study:

  • To propose a novel DEA-type methodology for green supplier selection.
  • To enhance existing DEA models by incorporating both management and green criteria with desirable and undesirable outputs.
  • To develop an improved multi-criteria decision model for simultaneous evaluation of management, green, and overall supplier efficiency.

Main Methods:

  • A DEA-based methodology is developed, redefining the division of measurement indicators.
  • Management criteria are classified as input, desirable output, and undesirable output variables.
  • Green criteria are defined as desirable and undesirable output variables.
  • An improved model integrates multi-criteria and multi-objective programming with DEA efficiency decomposition.

Main Results:

  • The proposed methodology offers a more comprehensive approach to green supplier selection by considering diverse indicator types.
  • The enhanced DEA model allows for simultaneous evaluation of management efficiency, green efficiency, and overall supplier performance.
  • A numerical example demonstrates the practical applicability and effectiveness of the developed model.

Conclusions:

  • The novel DEA-type methodology provides a superior framework for green supplier selection compared to previous approaches.
  • The integrated multi-criteria decision model aids companies in identifying optimal green suppliers.
  • This research contributes to advancing sustainable supply chain practices through improved supplier evaluation techniques.