Business process reengineering in supply chain management and supplier selection with DEA-AHP at Vestel Electronics

Data Envelopment Analysis (DEA) with Analytic Hierarchical Process (AHP) method is used for supplier selection at a television company. Screen label product group is selected. Business process reengineering is used before supplier selection analysis because supplier selection will be meaningful with setting up strong structure on that product group. The improvement opportunities are evaluated and successfully applied for screen label product group. The proposed algorithm has been designed for sequencing the multi input and output units. In the initial step of the algorithm, all inputs and outputs of the units are formulated using DEA. These models are, then, decomposed in the LINDO package program; later in the second step, pair-wise comparison values with the help of AHP, are sequenced using the affection of binary correlation matrix. Moreover, sensitivity analysis is applied in order to determine efficiency of price on supplier selection.