Green supplier selection and evaluation using DEA-type composite indicators

Supplier assessment is widely studied in the literature as it is an important means of managing supplier relationships. Although some evaluation methods have been proposed in the literature to measure suppliers׳ green performance, they are not developed specifically to help other than strategic purchasing situation. Based on literature results our paper examines the extension of the vendor evaluation methods with environmental, green issues. This generalization means an extension of the traditional criteria and weight system of the supplier evaluation methods. In our paper the method composite indicators (CI) is used to study the extension of traditional supplier selection methods with environmental factors. The selection of the weight system can control the result of the selection process. Our goal is to choose such weights which affect the results of the selection process. In this method we divide the criteria in two manners: the traditional (managerial) and environmental (green) factors. Then with the help of CI we are searching a weight system with which the environmental criteria can influence the decision with a representation of the green factors. In our study we look for a weight system to determine the environmental factors, as an important decision factors. To choose the mentioned weight system, we apply data envelopment analysis (DEA) with the common weights analysis (CWA) method.