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Measuring the Consequences of Conforming to Disparate Evaluation Teams’ Preferences on Supplier Evaluation--an Exploratory Study

By Frank P. Buffa, Anthony Ross

2009

Abstract

In this exploratory study we focus on the post performance evaluation of a supplier set by a buyer evaluation team and propose a method to measure the impact that conforming or disparate evaluation teams might have on the perception of supplier performance. We explore the use of data envelopment analysis (DEA) to model this impact by using the assurance region technique to model preferences of diverse types of evaluation teams. These preliminary results indicate that whether an evaluation team is conforming or disparate in it weighing of the importance of supplier performance attributes will impact the identification of a lead supplier in the set and the required performance improvements for each supplier to attain the performance level of the lead supplier. More importantly, the results indicated that DEA was a suitable technique to model different types of evaluation teams, and that additional research using DEA with data obtained from a large buyer with a vast number of suppliers could provide valuable insights into administering a relationship management plan with suppliers.

Keywords

Data Envelopment Analysis, Supplier Evaluation

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