Technical Journal of Engineering and Applied Sciences Available online at www.tjeas.com ©2013 TJEAS Journal-2013-3-14/1460-1465 ISSN 2051-0853 ©2013 TJEAS Evaluation of efficiency of supply chain in automobile industry by fuzzy data envelopment analysis (case study: Sazeh Gostar SAIPA company) Soleyman Iranzadeh, Ardeshir Bazrkar * and Kamal Khalilpour Department of Management, Mahabad Branch, Islamic Azad University, Mahabad, Iran * Corresponding author email: Ardeshir.13@gmail.com ABSTRACT: In today industrial world, ever increasing competition and rapid changes in economic scope have led to new context for planning for production and revolution in the world. Concurrent to revolutions, automobile industry has changed significantly. Automobile companies have expanded their supply chains from external resources and they have emphasized on their supply chains as a competitive advantage. One of the key indices is evaluation of efficiency of supply chain. This research tries to identify important criteria in the selection of suppliers and determine the importance of the criteria based on the experts’ viewpoints. Thus after selection of the final criteria, for evaluation of the departments of Sazeh Gostar SIPA company, the suppliers of these departments were evaluated by using Fuzzy DEA and Fuzzy CSW methods based on input and output criteria and finally they were graded according to efficiency score. keywords: Supply chain management, Data envelopment analysis (DEA), Fuzzy logic, Performance evaluation INTRODUCTION Supply chain management has been considered due to ever increasing competition and effort to survival by emphasize on information technology progress and communication in the recent years (Mossa Khani, Naebi, 2007). In two recent decades, by employment of supply chain management in industry selection of suppliers, efficiency has gained attention and different methods have been proposed. Since the supplier efficiency affects on success and failure of a chain. So selection of supplier is a strategic duty. As a result inaccurate decision making in selection of suppliers lead to negative and harmful consequences. So, optimal efficiency of supplier chain, in order to have competitive benefits, is considered as a strategic tool for success in all aspects of automobile industry (Mento, 2003). In this relation and according to current status, measuring efficiency and ratio of input and output is an important task for economic policy makers and experts. Literature review faroul offered non parametric method of dea for the first time in 1957 then chanes, cooper and rhodes (ccr) used it in 1987; consequemtly, banker, chanes and cooper (bcc) employed it in 1984. sengopeta offered principles of fuzzy set theory in 1992 and belman and zadeh (1970) and vezerman (1976) developed it for data envelopment analysis as fuzzy. weber et al. (2000) used a combinatory optimization approach involving multipurpose planning and dea approach. in this approach at first, multipurpose programming was employed for selection of suppliers and then it was used for evaluation of supplier efficiency based on dea approach and finally in 2007 bank and yung (2007) employed dea model for measuring supplier chain efficiency in singapour. safar khanlu (2005) used fuzzy dea for evaluation of supply chain and identification of efficient and inefficient decision making units. javan rouh (2003) employed balanced score cards and organization progress models for evaluation of efficiency of sapko automobile parts company stuff. The aim of this article is to offer an appropriate model for evaluation of supply chain and competent and incompetent suppliers’ selection based on defined criteria used as input and output in the model.