A new goal-directed benchmarking for supplier selection in the presence of undesirable outputs

Abstract

Purpose – In this paper, the authors extend the goal-directed benchmarking theory proposed by Stewart for benchmarking and selecting suppliers. This extension is in recognition of the fact that benchmarking for suppliers is more than a pure monitoring process and includes a component of future planning. The paper aims to discuss these issues. Design/methodology/approach – In this paper, the proposed model utilizes a goal programming structure to find points on the efficient frontier which are realistically attainable by suppliers in the presence of undesirable outputs, but at the same time achieving a closer method to long-term organizational goals (as distinct from the local performance of individual suppliers). Findings – The contributions of the current paper are as follows: the proposed model considers undesirable outputs in the context of goal-directed benchmarking. The proposed model does not demand weights from the decision maker. The proposed model can be easily computerized, enabling it to serve as a decision making tool to assist decision makers. For the first time, the proposed model is applied for the supplier selection and benchmarking. Originality/value – To the best of knowledge of the authors, there is not any reference that discusses supplier selection problem and benchmarking in the presence of undesirable outputs in the context of goal-directed benchmarking.