scholarly journals Efficiency in the Worst Production Situation Using Data Envelopment Analysis

2013 ◽  
Vol 2013 ◽  
pp. 1-9 ◽  
Author(s):  
Md. Kamrul Hossain ◽  
Anton Abdulbasah Kamil ◽  
Adli Mustafa ◽  
Md. Azizul Baten

Data envelopment analysis (DEA) measures relative efficiency among the decision making units (DMU) without considering noise in data. The least efficient DMU indicates that it is in the worst situation. In this paper, we measure efficiency of individual DMU whenever it losses the maximum output, and the efficiency of other DMUs is measured in the observed situation. This efficiency is the minimum efficiency of a DMU. The concept of stochastic data envelopment analysis (SDEA) is a DEA method which considers the noise in data which is proposed in this study. Using bounded Pareto distribution, we estimate the DEA efficiency from efficiency interval. Small value of shape parameter can estimate the efficiency more accurately using the Pareto distribution. Rank correlations were estimated between observed efficiencies and minimum efficiency as well as between observed and estimated efficiency. The correlations are indicating the effectiveness of this SDEA model.

Author(s):  
Sepky Mardian ◽  
Rismayanti Rismayanti ◽  
Mustafa Kamal ◽  
Rianti Pratiwi

Abstract   This paper analyzes the efficiency of Badan Aml Zakat Nasional (BAZNAS) and Dompet Dhuafa from 2002 to 2018. Based on selected input and output, the intermediary approach assumes that BAZNAS and Dompet Dhuafa act as a link between muzakki (giver) and beneficiaries. Furthermore, BAZNAS and Dompet Dhuafa were selected as decision-making units (DMU) from 2002 to 2018, and their efficiency was measured using Data Envelopment Analysis (DEA) method under output-orientation with Constant Return to Sclae (CRS) and Variable Return to Scale (VRS) assumptions. The results showed both BAZNAS and Dompet Dhuafa raise the optimum efficiency in the years before 2007. Meanwhile, their inefficiency was mostly due to lack of input such as higher personalia (amil/volunteers) expenses. Therefore, these findings suggests that both technical and scale efficiency should be improved by adjusting the input. This is to achieve the most efficient and productive level of performance in order to fulfill the institutions' objectives as an intermediary between muzakki and the beneficiaries. This paper is among the pioneers that analyzed the efficiency of zakat institutions from their initial establishment to present. Also, existing papers examined data spanning 5 years or less. Hence, long duration of data analysis provides a comprehensive evaluation of fluctuations in the zakat institutions efficiency and their supporting or inhibiting factors.  


Mathematics ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 469
Author(s):  
Chia-Nan Wang ◽  
Thi-Ly Nguyen ◽  
Thanh-Tuan Dang ◽  
Thi-Hong Bui

In Vietnam, fishing is a crucial source of nutrition and employment, which not only affects the development of the domestic economy but is also closely related to exports, heavily influencing the economy and foreign exchange. However, the Vietnamese fishery sector has been facing many challenges in innovating production technology, improving product quality, and expanding markets. Hence, the fishery enterprises need to find solutions to increase labor productivity and enhance competitiveness while minimizing difficulties. This study implemented a performance evaluation from 2015 to 2018 of 17 fishery businesses, in decision making units (DMUs), in Vietnam by applying data envelopment analysis, namely the Malmquist model. The objective of the paper is to provide a general overview of the fishery sector in Vietnam through technical efficiency, technological progress, and the total factor productivity in the four-year period. The variables used in the model include total assets, equity, total liabilities, cost of sales, revenue, and profit. The results of the paper show that Investment Commerce Fisheries Corporation (DMU10) and Hoang Long Group (DMU8) exhibited the best performances. This paper offers a valuable reference to improve the business efficiency of Vietnamese fishery enterprises and could be a useful reference for related industries.


2019 ◽  
Vol 2 (2) ◽  
pp. 82-89
Author(s):  
Nor Tasik Misbahrudin

Waqf is a voluntary charity that cannot be disposed of and the ownership cannot be transferred once it is declared as waqf assets. Waqf institutions play an important role in helping the development of Muslims ummah through wealth distribution. State Islamic Religious Councils (SIRCs) in Malaysia are the sole trustee that manage and develop waqf assets. Based on selected input and output, the intermediary approach assumes that cash waqf received as output while total expenditure of SIRCs as input. Under this approach SIRCs act as intermediary between waqif (giver) and beneficiaries. Thus, this paper attempts to analyze the efficiency of waqf institutions in Malaysia by using Data Envelopment Analysis (DEA) method under output-orientation using Variable Return to Scale (VRS) assumptions. Four SIRCs were selected as decision making units (DMU) for the period of 2011 to 2015. The result indicates that changes in average technical efficiency for every year is contributed by both pure technical and scale. However, inefficiency of Malaysian waqf institutions is mostly contributed by pure technical efficiency aspects rather than scale. 2012 showed the highest average technical efficiency with 73.9% as most of the institutions operated in optimum level of input to produce output. Thus, the result suggests that both technical and scale efficiency should be improved to achieve the most efficient and productive level of performance in order to fulfill objectives of the institutions as an intermediary between waqif and beneficiaries.


2021 ◽  
pp. 2150010
Author(s):  
DO THI THANH NHAN ◽  
KIM-HUNG PHO ◽  
DANG THI VAN ANH ◽  
MICHAEL MCALEER

Efficiency is a topic of great interest because its applications are diverse and rich. It is applied greatly in all scientific disciplines, especially accounting for a very large proportion in economics, finance and accounting. The main objective in this paper is to analyze the effectiveness of banks in Vietnam. In order to investigate this issue, there are several implements to examine bank effectiveness where the data envelopment analysis (DEA) method is widely used. This paper presents details of the DEA method. Using the data collected from banks in Vietnam for the period 2014–2017, the approach is executed to investigate issues of technical efficiency, resource analysis and business efficiency of banks in Vietnam.


2018 ◽  
Vol 22 ◽  
pp. 01051
Author(s):  
Yunus GÜRAL ◽  
Ayşe Turan BUĞATEKİN

Data Envelopment Analysis (DEA) is a nonparametric method used to examine the relative efficiencies of Decision Making Units (DMUs) on conditions where there are multiple inputs and multiple outputs. As in all sectors, it is very important for the automotive sector to operate effectively. Therefore, it is also important to measure the efficiency and find the source of the inefficiency. In this study, the performances of the DMU of the automobiles will examine using Data Envelopment Analysis. In this direction, it is aimed to assist consumers in purchasing by calculating the relative efficiencies of automobile models, determining effective and ineffective DMUs according to the wishes of the consumers. Sales price and fuel consumption are determined as input variables; maximum speed, cylinder volume, horsepower, maximum torque, luggage volume, acceleration time from 0 to 100 km are determined as output variables.


Transport ◽  
2012 ◽  
Vol 27 (2) ◽  
pp. 178-186 ◽  
Author(s):  
Ilona Jaržemskienė

The author of the article describes the theoretical assumptions of the DEA method used for measuring the productivity of airports described in the article ‘Research into the methods of analysing the productivity indicators of transport terminals’ (Jaržemskienė 2009). The essential insights presented in the above mentioned paper reveal that Data Envelopment Analysis (DEA) is a relatively new ‘data oriented’ approach to evaluating the performance of the so-called Decision Making Units (DMU) that convert multiple inputs into multiple outputs. The article focuses on the findings of the study carried out by the author in accordance with those assumptions. Research represents the Data Envelopment Analysis (DEA) method testing 15 selected airports situated in the Baltic Region, including Vilnius, Kaunas, Palanga, Riga, Tallinn, St. Petersburg, Helsinki, Turku, Stockholm, Malme, Copenhagen, Hamburg, Gdansk, Warsaw and Minsk. Airport productivity indicators are ranked considering importance and using the method of Delphi expert survey made of two rounds. The author presented the following indicators (expressed as ‘ratio’) as the major ones estimated by PAX/LAND, AIR/LAND, PAX/AIR, PAX/RW, PAX/RWA, GA and INTER experts. The succeeding indicators were introduced by PAX/TERMAREA, PAX/GATES, AIR/RW, AIR/RWA, AIR/TERMAREA, AIR/GATES, FR/LAND and FR/RW. 10 indicators were accepted as the most important and selected from the current set in the following sequence: AIR/LAND, AIR/RW, PAX/RW, PAX/LAND, AIR/RWA, PAX/AIR, PAX/RWA, AIR/TERMAREA, PAX/GATES and PAX/TERMAREA. AIR/LAND and AIR/RW were submitted as two main indicators. The acronyms are explained as follows: LAND – airport area, RWA – runway length, PAX – the number of passengers, AIR – the number of aircraft take-offs and landings, RW – the number of runways, GATES – the number of gates, FR – the amount of freight served, TERMAREA – the area of passenger terminal, GA – a general aviation market share of airport served aircraft by percentage, INTER – the percentage of international passengers considering all passengers served by airports. After two key productivity indicators were chosen conducting the expert survey, airport productivity was compared applying the DEA method.


2018 ◽  
Vol 2 (2) ◽  
Author(s):  
Aam S. Rusydiana ◽  
Irman Firmansyah

The Development of Islamic Banking Industry in Indonesia relatively shows a good tendency. In the market, inefficiency would be the great obstacles in head to head to conventional bank. Despite of efficiency performance in Islamic Bank, Islamic Bank also must have sharia compliance performance. So it needed to identified the efficiency of Islamic Bank in Indonesia and the achievement of Maslahah in term of three aspects, there are education, the creating of justice, and the attainment of welfare. This study would try to measure the efficiency of Islamic Banking Industry with Data Envelopment Analysis (DEA) method and also to evaluate the performance by using Maqasid Sharia Index (MSI). Banxia Frontier Analyst 3.1 used in the data calculation. The calculation of the level of Islamic Bank efficiency in this study are relative, not absolute. Result of this study indicate four main findings, first, Islamic bank involve in quadran 1 is Islamic bank who reached the highest efficiency and the best performance; there are BMI and Bank Panin Sharia. Islamic bank involve in quadran 2 is Islamic bank who reached the highest efficiency and the lowest performance, there are BSM, Maybank Sharia, and Bank Sharia Bukopin. Islamic bank involve in quadran 3 is Islamic bank who reached the lowest efficiency and have a good performance, there are BRI sharia, and BCA sharia. Islamic bank involve in quadran 4 is Islamic bank who reached the lowest efficiency and the lowest performance, there are Bank Mega Sharia, Victoria Sharia, BNI Sharia, and BJB Sharia.Keywords: Maqasid Index, Efficiency, DEA, Efficiency-Maqasid Quadrant (EMQ) 


2021 ◽  
Vol 5 (1) ◽  
pp. 94
Author(s):  
Dahlan Abdullah ◽  
Hartono ◽  
Cut Ita Erliana

The Data Envelopment Analysis (DEA) method is a method commonly used in benchmarking. The Dynamic Data Envelopment Analysis (DDEA) method was proposed to improve the DEA method in the benchmarking process. The DDEA method proposed can determine the effectiveness of the Decision Making Unit (DMU). The disadvantage of the DDEA model is that it cannot handle problems that involve benchmarking for stochastic data. To improve the DDEA method, the Stochastic Data Envelopment Analysis (SDEA) method is proposed which can be used for benchmarking involving stochastic data. The SDEA method itself has weaknesses in dealing with noise and uncertainty problems that will appear in the assessment process. The purpose of the research conducted by the researcher was to use the Hesitant Fuzzy method in optimizing the SDEA method so that the Hesitant Fuzzy model - Stochastic Data Envelopment Analysis (HF-SDEA) could be carried out benchmarking process in a situation where the assessment contained many elements of uncertainty. The results of this study are benchmarking methods that can do benchmarking for stochastic data on conditions that contain elements of uncertainty.


Complexity ◽  
2022 ◽  
Vol 2022 ◽  
pp. 1-11
Author(s):  
Marzieh Ghasemi ◽  
Mohammad Reza Mozaffari ◽  
Farhad Hosseinzadeh Lotfi ◽  
Mohsen Rostamy malkhalifeh ◽  
Mohammad Hasan Behzadi

One of the mathematical programming techniques is data envelopment analysis (DEA), which is used for evaluating the efficiency of a set of similar decision-making units (DMUs). Fixed resource allocation and target setting with the help of DEA is a subject that has gained much attention from researchers. A new model was proposed by determining a common set of weights (CSW). All DMUs were involved with the aim of achieving higher efficiency in every DMU after the procedure. The minimum resources and targets allocated to each DMU were commensurate to the efficiency of that DMU and the share of DMU in the input resources and the output productions. To examine the proposed method, other methods in the DEA literature were examined as well, and then, the efficiency of the method was demonstrated through a numerical example.


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