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Research Journal of Business Management
  Year: 2012 | Volume: 6 | Issue: 4 | Page No.: 103-120
DOI: 10.3923/rjbm.2012.103.120
Developing a Nondiscretionary Slacks-based Measure Model for Supplier Selection in the Presence of Stochastic Data
Majid Azadi and Reza Farzipoor Saen

Abstract:
Supplier selection has a strategic importance for every company. Nondiscretionary Slacks-based Measure (SBM) model is one of the models in Data Envelopment Analysis (DEA). In many real world applications, data are often stochastic. A successful approach to the address uncertainty in data is to replace deterministic data via random variables, leading to Chance-constrained DEA (CCDEA). In this study, the concept of chance-constrained programming approach is used to develop nondiscretionary SBM model in the presence of stochastic data and also its deterministic equivalent which is a nonlinear program is derived. Furthermore, it is shown that the deterministic equivalent of the stochastic nondiscretionary SBM model can be converted into a quadratic program. Finally, a numerical example demonstrates the application of the proposed model.
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How to cite this article:

Majid Azadi and Reza Farzipoor Saen, 2012. Developing a Nondiscretionary Slacks-based Measure Model for Supplier Selection in the Presence of Stochastic Data. Research Journal of Business Management, 6: 103-120.

DOI: 10.3923/rjbm.2012.103.120

URL: https://scialert.net/abstract/?doi=rjbm.2012.103.120

 
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