An integrated neural network and data envelopment analysis for supplier evaluation under incomplete information

Supplier evaluation and selection are critical decision making processes that require consideration of a variety of attributes. Several studies have been performed for effective evaluation and selection of suppliers by utilizing several techniques such as linear weighting methods, mathematical programming models, statistical methods and AI based techniques. One of the successful evaluation methods proposed for this purpose is data envelopment analysis (DEA), that utilizes techniques of mathematical programming to evaluate the performance of a set of homogeneous decision making units, when multiple inputs and outputs need to be considered. It is often complicated, costly and sometimes impossible to acquire all necessary information from all potential suppliers to attain a reasonable set of similar input and output values which is an essential for DEA. The purpose of this study is to explore a novel integration of neural networks (NN) and data envelopment analysis for evaluation of suppliers under incomplete information of evaluation criteria.

[1]  Keki R. Bhote Strategic supply management , 1989 .

[2]  T. R. Nunamaker,et al.  Using data envelopment analysis to measure the efficiency of non‐profit organizations: A critical evaluation , 1985 .

[3]  Gülay Barbarosoğlu,et al.  An Application of the Analytic Hierarchy Process to the Supplier Selection Problem , 1997 .

[4]  Michael Negnevitsky,et al.  Artificial Intelligence: A Guide to Intelligent Systems , 2001 .

[5]  Srinivas Talluri,et al.  A buyer-seller game model for selection and negotiation of purchasing bids , 2002, Eur. J. Oper. Res..

[6]  Jinlong Zhang,et al.  A supplier-selecting system using a neural network , 1997, 1997 IEEE International Conference on Intelligent Processing Systems (Cat. No.97TH8335).

[7]  Robert J. Schalkoff,et al.  Artificial neural networks , 1997 .

[8]  Kurt Hornik,et al.  Multilayer feedforward networks are universal approximators , 1989, Neural Networks.

[9]  W. C. Benton,et al.  Supplier Selection and Order Quantity Allocation: A Comprehensive Model , 1999 .

[10]  Thomas Y. Choi,et al.  An exploration of supplier selection practices across the supply chain , 1996 .

[11]  L. D. Boer,et al.  A review of methods supporting supplier selection , 2001 .

[12]  R. C. Baker,et al.  A multi-phase mathematical programming approach for effective supply chain design , 2002, Eur. J. Oper. Res..

[13]  Donald R. Lehmann,et al.  Decision Criteria Used in Buying Different Categories of Products , 1982 .

[14]  Srinivas Talluri,et al.  Vendor Performance With Supply Risk: A Chance-Constrained DEA Approach , 2006 .

[15]  Chen-Tung Chen,et al.  A fuzzy approach for supplier evaluation and selection in supply chain management , 2006 .

[16]  W. A. Dempsey Vendor selection and the buying process , 1978 .

[17]  S. Talluri,et al.  A Model for Strategic Supplier Selection , 2002 .

[18]  A. Charnes,et al.  Data Envelopment Analysis Theory, Methodology and Applications , 1995 .

[19]  W. Cooper,et al.  Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software , 1999 .

[20]  C. Swift Preferences for single sourcing and supplier selection criteria , 1995 .

[21]  W. B. Lee,et al.  An intelligent supplier management tool for benchmarking suppliers in outsource manufacturing , 2002, Expert Syst. Appl..

[22]  László Monostori,et al.  Training and Application of Artificial Neural Networks with Incomplete Data , 2002, IEA/AIE.

[23]  C. Weber A data envelopment analysis approach to measuring vendor performance , 1996 .

[24]  Barry Render,et al.  Operations Management , 2019, CCSP (ISC)2 Certified Cloud Security Professional Official Study Guide, 2nd Edition.

[25]  Terry Anthony Byrd,et al.  A framework for measuring the efficiency of organizational investments in information technology using data envelopment analysis , 2000 .

[26]  John R. Current,et al.  Non-cooperative negotiation strategies for vendor selection , 1998, Eur. J. Oper. Res..

[27]  Michael Kublin,et al.  The Relative Importance of Supplier Selection Criteria: The Case of Electronic Components Procurement in Japan , 1998 .

[28]  Neeraj Bharadwaj Investigating the decision criteria used in electronic components procurement , 2004 .

[29]  W. C. Benton,et al.  Vendor selection criteria and methods , 1991 .

[30]  Subhash C. Ray Input Aggregation in Models of Data Envelopment Analysis: A Statistical Test with an Application to Indian Manufacturing , 2005 .

[31]  Sang-Chan Park,et al.  An effective supplier selection method for constructing a competitive supply-relationship , 2005, Expert Syst. Appl..

[32]  Lisa M. Ellram,et al.  Supplier Selection and Evaluation in Small versus Large Electronics Firms , 1995 .

[33]  Donald R. Lehmann,et al.  Difference in Attribute Importance for Different Industrial Products , 1974 .

[34]  S. H. Ghodsypour,et al.  The total cost of logistics in supplier selection, under conditions of multiple sourcing, multiple criteria and capacity constraint , 2001 .

[35]  Gary W. Dickson,et al.  AN ANALYSIS OF VENDOR SELECTION SYSTEMS AND DECISIONS , 1966 .

[36]  C. Weber,et al.  Determination of paths to vendor market efficiency using parallel coordinates representation: A negotiation tool for buyers , 1996 .

[37]  Stephen I. Gallant,et al.  Neural network learning and expert systems , 1993 .

[38]  L. Ellram,et al.  Supplier Selection Using Multi‐objective Programming: A Decision Support System Approach , 1993 .

[39]  Martti Juhola,et al.  Treatment of missing data values in a neural network based decision support system for acute abdominal pain , 1998, Artif. Intell. Medicine.

[40]  Henry C. W. Lau,et al.  A knowledge-based system to support procurement decision , 2005, J. Knowl. Manag..

[41]  Volker Tresp,et al.  Classification with missing and uncertain inputs , 1993, IEEE International Conference on Neural Networks.

[42]  Hisao Ishibuchi,et al.  Neural-network-based diagnosis systems for incomplete data with missing inputs , 1994, Proceedings of 1994 IEEE International Conference on Neural Networks (ICNN'94).

[43]  W. B. Lee,et al.  Design of an intelligent supplier relationship management system: a hybrid case based neural network approach , 2003, Expert Syst. Appl..