Demand assignment: a DEA and goal programming approach

Abstract

Assignment problem has always been a popular problem for production and operations research. There have been developed many methods and heuristics for these kinds of problems. This research deals with the problem of an automotive company's driver belt assembly supply from its by-industry suppliers. Firstly, the suppliers are evaluated by data envelopment analysis (DEA), which is a mathematical modelling approach finding the relative efficiencies of the decision making units (DMUs). Later on, the suppliers that: are found inefficient are eliminated and only the efficient suppliers are included for the assignment problem. Preemptive goal programming (PGP) is applied for the assignment of demand in order to satisfy the goals and the demand of the company by taking into account the priorities given by the company.