A common-weight DEA model for multi-criteria ABC inventory classification with quantitative and qualitative criteria

2019 ◽  
Vol 53 (5) ◽  
pp. 1775-1789
Author(s):  
Qingxian An ◽  
Yao Wen ◽  
Junhua Hu ◽  
Xiyang Lei

ABC analysis is a famous technique for inventory classification. However, this technique on the inventory classification only considering one indicator even though other important factors may affect the classification. To address this issue, researchers have proposed multiple criteria inventory classification (MCIC) solutions based on data envelopment analysis (DEA)-like methods. However, previous models almost evaluate items by different weight sets, and the index system only contains quantitative criteria and output indicators. To avoid these shortcomings, we propose an improved common-weight DEA model for MCIC issue. This model simultaneously considers quantitative and qualitative criteria as well as establishes a comprehensive index system that includes inputs and outputs. Apart from its improved discriminating power and lack of subjectivity, this non-parametric and linear programming model provides the performance scores of all items through a single computation. A case study is performed to validate and compare the performance of this new model with that of traditional ABC analysis, DEA–CCR and DEA–CI. The results show that apart from the highly improved discriminating power and significant reduction in computational burden, the proposed model has achieved a more comprehensive ABC inventory classification than the traditional models.

2019 ◽  
Vol 11 (8) ◽  
pp. 2330 ◽  
Author(s):  
Patricija Bajec ◽  
Danijela Tuljak-Suban

Sustainable concerns are reputed to be of the utmost priority among governments. Consequently, they have become more and more of a concern among supply chain partners. Logistics service providers (LPs), as significant contributors to supply chain success but also one of the greatest generator of emissions, play a significant role in reducing the negative environmental impact. Thus, the performance evaluations of LPs should necessarily involve such a measure which, firstly, represents a balance between all three pillars of sustainability and, secondly, consider the desirable and undesirable performance criteria. This paper proposes an integrated analytic hierarchy process (AHP) and slack-based measure (SBM) data envelopment analysis (DEA) model, based on the assumption of a variable return to scale (VRS). An AHP pairwise comparison enables selecting the most influential input/output variables. Output-oriented SBM DEA provides simultaneously evaluation of both the undesirable and desirable outputs. The proposed model was tested on a numerical example of 18 LPs. The comparison of output Charnes, Cooper and Rhodes (CCR) and SBM DEA models resulted in a higher number of inefficient LPs when the SBM DEA model was applied. Moreover, efficiency scores of inefficient LPs were lower in SBM DEA model. The proposed model is fair to those LPs that are environmentally friendly.


2020 ◽  
Vol 54 (4) ◽  
pp. 1215-1230
Author(s):  
Mediha Örkcü ◽  
Volkan Soner Özsoy ◽  
H. Hasan Örkcü

The ranking of the decision making units (DMUs) is an essential problem in data envelopment analysis (DEA). Numerous approaches have been proposed for fully ranking of units. Majority of these methods consider DMUs with optimistic approach, whereas their weaknesses are ignored. In this study, for fully ranking of the units, a modified optimistic–pessimistic approach, which is based on game cross efficiency idea is proposed. The proposed game like iterative optimistic-pessimistic DEA procedure calculates the efficiency scores according to weaknesses and strengths of units and is based on non-cooperative game. This study extends the optimistic-pessimistic DEA approach to obtain robust rank values for DMUs. The proposed approach yields Nash equilibrium solution, thus overcomes the problem of non-uniqueness of the DEA optimal weights that can possibly reduce the usefulness of cross efficiency. Finally, in order to verify the validity of the proposed model and to show the practicability of algorithm, we apply a real-world example for selection of industrial R&D projects. The proposed model can increase the discriminating power of DMUs and can fully rank the DMUs.


2021 ◽  
Author(s):  
Leyla Fazli

Abstract Humanmade or natural catastrophes such as droughts, floods, earthquakes, storms, coups, economic and political crises, wars, and so forth impact various areas of the world annually. Furthermore, the lack of adequate preparations and proper coping against them causes nations to suffer heavy losses and casualties, which are sometimes irrecoverable. Consequently, as an essential activity in crisis management, humanitarian relief logistics has been of particular importance and has taken a good deal of notice at the international level during recent years. Aid facilities location and the storage of necessary commodities before a disaster and the proper distribution of relief commodities among demand points following a disaster are critical logistical strategies to improve performance and reduce latency when responding to a given disaster. In this regard, this study presents a stochastic multi-objective mixed-integer non-linear programming model in a two-level network that includes warehouses and affected areas. The model aims at minimizing total social costs, which include the expense of founding warehouses, the expense of procuring commodities, and deprivation cost, as well as maximizing fulfilled demands and warehouses utility. In this study, several pre-disaster periods, a limited budget for establishing warehouses and procuring relief commodities with their gradual injection into the system, the time value of money, various criteria for evaluating warehouses, the risk of disruption in warehouses and transportation networks, and heterogeneous warehouses are considered. The maximization of warehouses utility is done according to a data envelopment analysis model. Moreover, a multi-objective fuzzy programming model called the weighted max-min model is applied to solve the proposed model. Ultimately, the outcomes of the evaluation and validation of the proposed model show its appropriate and efficient performance.


2019 ◽  
Vol 53 (2) ◽  
pp. 705-721 ◽  
Author(s):  
Ali Ebrahimnejad ◽  
Seyed Hadi Nasseri ◽  
Omid Gholami

Data Envelopment Analysis (DEA) is a widely used technique for measuring the relative efficiencies of Decision Making Units (DMUs) with multiple deterministic inputs and multiple outputs. However, in real-world problems, the observed values of the input and output data are often vague or random. Indeed, Decision Makers (DMs) may encounter a hybrid uncertain environment where fuzziness and randomness coexist in a problem. Hence, we formulate a new DEA model to deal with fuzzy stochastic DEA models. The contributions of the present study are fivefold: (1) We formulate a deterministic linear model according to the probability–possibility approach for solving input-oriented fuzzy stochastic DEA model, (2) In contrast to the existing approach, which is infeasible for some threshold values; the proposed approach is feasible for all threshold values, (3) We apply the cross-efficiency technique to increase the discrimination power of the proposed fuzzy stochastic DEA model and to rank the efficient DMUs, (4) We solve two numerical examples to illustrate the proposed approach and to describe the effects of threshold values on the efficiency results, and (5) We present a pilot study for the NATO enlargement problem to demonstrate the applicability of the proposed model.


2014 ◽  
Vol 496-500 ◽  
pp. 2768-2774 ◽  
Author(s):  
Jian Yong Liu ◽  
Huai Xiao Wang ◽  
Ling Li ◽  
Cheng Qun Fu

In order to solve the problem that the subjectivity of traditional evaluation method and difficulty of testing correlation on comprehensive protective of protective engineering, this message establishes the index system model of comprehensive protective of protective engineering and input-output DEA model of two goals. Based on this, the input-output DEA model of two goals is used to evaluate the comprehensive protective of protective engineering. The example shows that the method in this passage makes effort to compare the DMUs effectively and select the best DMU.


2015 ◽  
Vol 2015 ◽  
pp. 1-11 ◽  
Author(s):  
S. M. Hatefi ◽  
S. A. Torabi

Organizations typically employ the ABC inventory classification technique to have an efficient control on a huge amount of inventory items. The ABC inventory classification problem is classification of a large amount of items into three groups: A, very important; B, moderately important; and C, relatively unimportant. The traditional ABC classification only accounts for one criterion, namely, the annual dollar usage of the items. But, there are other important criteria in real world which strongly affect the ABC classification. This paper proposes a novel methodology based on a common weight linear optimization model to solve the multiple criteria inventory classification problem. The proposed methodology enables the classification of inventory items via a set of common weights which is very essential in a fair classification. It has a remarkable computational saving when compared with the existing approaches and at the same time it needs no subjective information. Furthermore, it is easy enough to apply for managers. The proposed model is applied on an illustrative example and a case study taken from the literature. Both numerical results and qualitative comparisons with the existing methods reveal several merits of the proposed approach for ABC analysis.


2015 ◽  
Vol 53 (10) ◽  
pp. 2390-2406 ◽  
Author(s):  
Aibing Ji ◽  
Hui Liu ◽  
Hong-jie Qiu ◽  
Haobo Lin

Purpose – The purpose of this paper is to build a novel data envelopment analysis (DEA) model to evaluate the efficiencies of decision making units (DMUs). Design/methodology/approach – Using the Choquet integrals as aggregating tool, the authors give a novel DEA model to evaluate the efficiencies of DMUs. Findings – It extends DEA model to evaluate the DMU with interactive variables (inputs or outputs), the classical DEA model is a special form. At last, the authors use the numerical examples to illustrate the performance of the proposed model. Practical implications – The proposed DEA model can be used to evaluate the efficiency of the DMUs with multiple interactive inputs and outputs. Originality/value – This paper introduce a new DEA model to evaluate the DMU with interactive variables (inputs or outputs), the classical DEA model is a special form.


2020 ◽  
Vol 31 (4) ◽  
pp. 505-516
Author(s):  
Mojtaba Ghiyasi ◽  
Ning Zhu

Abstract The conventional inverse data envelopment analysis (DEA) model is only applicable to positive data, while negative data are commonly present in most real-world applications. This paper proposes a novel inverse DEA model that can handle negative data. The conventional inverse DEA model is a special case of our model as our model is more general in terms of returns-to-scale properties. The proposed model is used to evaluate the efficiency of the Chinese commercial banks after the global financial crisis, where negative outputs existed. We show that our model is feasible in the presence of negative data and generates empirical findings that are consistent with reality.


2021 ◽  
Vol 20 (1) ◽  
pp. 58-85
Author(s):  
Sajad Kazemi ◽  

There is considerable empirical evidence on the advantages of interorganizational research collaborative networks across societies and research institutes such as research and development (R&D) centers and universities. Identifying a leader in this contexts is important both theoretically for doing leadership studies, and practically for effective governmental funding allocation and private investments. Inconsistent definitions and non-homogeneous attributes with unidimensional measurement approaches such as subjective measuring of power or considering a central company as the leader made the previous efforts inefficient for identifying leaders in an interorganizational setting. This research aims to identify a leading organization among a set of homogenous R&D centers in a research collaborative network context through implementing the main leader’s attributes in different dimensions. The article presents a multidimensional common weight model based on the data envelopment analysis (DEA) approach in a parallel system with several operational dimensions each of which consumes a set of inputs (budget, lecturers, and students) to produce a set of outputs (scientific meetings and conferences, national and international papers). Centrality and visibility are two main leaders’ attributes combined with efficiency influence the contributions and outcomes of each collaborative network partner. It is demonstrated how the proposed model performs its high-efficiency score in the most influential R&D center named the “leader” among 47 R&D centers in medical universities in Iran. The comparative analysis of managerial results showed that reputation has a greater impact on leader identification than centrality. The results based on mathematical calculations showed a robust discriminating power for efficiency measurement of the proposed model.


2019 ◽  
Vol 53 (5) ◽  
pp. 1633-1648 ◽  
Author(s):  
Hashem Omrani ◽  
Setareh Mohammadi ◽  
Ali Emrouznejad

Data Envelopment Analysis (DEA) is a powerful method for analyzing the performance of decision making units (DMUs). Traditionally, DEA is applied for estimating the performance of a set of DMUs through measuring a single perspective of efficiency. However, in recent years, due to increasing competition in various industries, modern enterprises focus on enhancing their performance by measuring efficiencies in different aspects, separately or simultaneously. This paper proposes a bi-level multi-objective DEA (BLMO DEA) model which is able to assess the performance of DMUs in two different hierarchical dimensions, simultaneously. In the proposed model, we define two level efficiency scores for each DMU. The aim is to maximize these two efficiencies, simultaneously, for each DMU. Since the objective functions at both levels are fractional, a fuzzy fractional goal programming (FGP) methodology is used to solve the proposed BLMO DEA model. The capability of the proposed model is illustrated by a numerical example. Finally, to practically validate the proposed model, a real case study from 45 bank’s branches is applied. The results show that the proposed model can provide a more comprehensive measure for efficiency of each bank’s branch based on simultaneous measuring of two different efficiencies, profit and operational efficiencies, and by considering the level of their importance.


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