A peeling DEA-game cross efficiency procedure to classify suppliers

Abstract

This paper proposes a non-parametric procedure to classify suppliers. The procedure adopts a peeling approach and Data Envelopment Analysis-game cross efficiency (DEA-GXE) method to group a set of suppliers into classes. In DEA-GXE each supplier is seen as a player competing in an uncooperative environment, seeking to maximize efficiency under the condition that the other suppliers’cross-efficiency does not deteriorate. The procedure is useful when there is a long list of suppliers that should be assessed by the customer, providing an agile decision-making tool.