Trade-off in facility location and facility efficiency in supply chain network: A Data Envelopment Analysis approach

Abstract

The purpose of this paper is to obtain an optimal DEA efficiency score simultaneously with facility location pattern for two-stage supply chain since there is a lack in the literature of multi-objective facility location and facility efficiency in supply chain network design. First network DEA has been introduced as a possible model to solve this problem. Secondly, we have presented a solution approach based on Benders decomposition algorithm (BDA) to deal with the large-scale size and last compare the result of the solution found via BDA with the result found from original problem via CPLEX. From the solution approach perspective, results of Benders decomposition algorithm depict that this algorithm even solving this problem for large-scale possesses better performance than CPLEX when the original problem is solved. Applicability and originality of the model have been explored with a real case study which validates the solution approach as well.