Integration of Data Envelopment Analysis with Analytical Hierarchy Process and Entropy Measurement in the Optimization of Supplier Selection

Authors

  • Nur Rasyida Mohd Rashid Mathematical Sciences Studies, College of Computing, Informatics and Media, Universiti Teknologi MARA (UiTM), Negeri Sembilan Branch, Seremban Campus 70300 Seremban, Negeri Sembilan, Malaysia.
  • Bushra Abdul Halim Mathematical Sciences Studies, College of Computing, Informatics and Media, Universiti Teknologi MARA (UiTM), Melaka Branch,78000 Alor Gajah, Melaka, Malaysia.
  • Iskandar Shah Mohd Zawawi School of Mathematical Sciences, College of Computing, Informatics and Media, Universiti Teknologi MARA 40450 Shah Alam, Selangor, Malaysia.
  • Husna Nadzirah Abdullah Mathematical Sciences Studies, College of Computing, Informatics and Media, Universiti Teknologi MARA (UiTM), Negeri Sembilan Branch, Seremban Campus, 70300 Seremban, Negeri Sembilan, Malaysia.
  • Nur Iylia Antasha Abu Hassan Mathematical Sciences Studies, College of Computing, Informatics and Media, Universiti Teknologi MARA (UiTM), Negeri Sembilan Branch, Seremban Campus, 70300 Seremban, Negeri Sembilan, Malaysia .
  • Nur Atikah Ismail Mathematical Sciences Studies, College of Computing, Informatics and Media, Universiti Teknologi MARA (UiTM), Negeri Sembilan Branch, Seremban Campus, 70300 Seremban, Negeri Sembilan, Malaysia.

DOI:

https://doi.org/10.11113/matematika.v39.n1.1391

Abstract

Supplier selection is perceived as important decision-making process in any supply chain management. In this study, the best supplier for a company is being determined based on five main criteria chosen which are delivery, capacity, warranty, cost, and quality. The Analytic Hierarchy Process (AHP) and Entropy Measurement (EM) methods are integrated with Data Envelopment Analysis (DEA) was applied to set ranking and choose the best supplier as conventional DEA is not able to provide complete ranking among inefficient units. The mathematical modelling is executed using LINGO software. Supplier 3 has obtained efficient result of score 1 for both hybrid method and in Super Efficiency method as the most efficient supplier. Then, the results are validated using Spearman’s Rank Correlation Coefficient (SRCC) which shows positive correlation between both integrated methods. Finally, findings of this study indicate the feasibility of integrated AHP-DEA and EM-DEA for supplier selection with multiple criteria.

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Published

15-04-2023

How to Cite

Mohd Rashid, N. R., Abdul Halim, B., Mohd Zawawi, I. S., Abdullah, H. N., Abu Hassan, N. I. A., & Ismail, N. A. (2023). Integration of Data Envelopment Analysis with Analytical Hierarchy Process and Entropy Measurement in the Optimization of Supplier Selection. MATEMATIKA, 39(1), 1–14. https://doi.org/10.11113/matematika.v39.n1.1391

Issue

Volume 39 (April 2023)

Section

Articles

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Copyright of articles that appear in MATEMATIKA: MJIAM belongs exclusively to Penerbit UTM Press, Universiti Teknologi Malaysia. This copyright covers the rights to reproduce the article, including reprints, electronic reproductions or any other reproductions of similar nature.