A New Double Frontiers Data Envelopment Analysis Approach for Assessing the Sustainability of Suppliers

Authors

  • Amin Zoghi * Department of Industrial Management, Faculty of Management and Accounting, Karaj Branch, Islamic Azad University, Karaj, Iran.

https://doi.org/10.22105/tqfb.v1i2.38

Abstract

One of the techniques for evaluating a supplier's sustainability is Data Envelopment Analysis (DEA). DEA is a non-parametric tool for measuring the relative efficiency of Decision-Making Units (DMUs). This paper develops a new double frontier DEA model based on the Slacks-Based Measure (SBM) for assessing suppliers' sustainability. Our proposed double frontier SBM model considers pessimistic and optimistic efficiencies. A case study is presented to demonstrate the applicability of the proposed model. The results show that the proposed model can completely rank the DMUs, and there is no tie between the overall efficiency scores.

Keywords:

Double frontier, Slacks-based measure, Sustainable supplier, Data envelopment analysis, Pessimistic efficiency, Optimistic efficiency

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Published

2024-09-28

Issue

Vol. 1 No. 2 (2024): Transactions on Quantitative Finance and Beyond

Section

Articles

How to Cite

Zoghi, A. (2024). A New Double Frontiers Data Envelopment Analysis Approach for Assessing the Sustainability of Suppliers. Transactions on Quantitative Finance and Beyond, 1(2), 203-216. https://doi.org/10.22105/tqfb.v1i2.38
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