scholarly journals A Dominance-Based Network Method for Ranking Efficient Decision-Making Units in Data Envelopment Analysis

2019 ◽  
Vol 11 (7) ◽  
pp. 2059 ◽  
Author(s):  
Jiyoung Lee ◽  
Gyunghyun Choi

Ranking of efficient decision-making units (DMUs) using data envelopment analysis (DEA) results is very important for various purposes. We propose a new comprehensive ranking method using network analysis for efficient DMUs to improve the discriminating power of DEA. This ranking method uses a measure, namely dominance value, which is a network centrality-based indicator. Thus far, existing methods exploiting DMU’s positional features use either the superiority, which considers the efficient DMUs’ relative position on the frontier compared to other DMUs, or the influence, which captures the importance of the DMUs’ role as benchmarking targets for inefficient DMUs. However, in this research, the dominance value is the compounded measure of both core positional features of DMUs. Moreover, a network representation technique has been used to ensure the performance of the dominance value compared to the superiority and influence. To demonstrate the proposed ranking method, we present two examples, research and development (R&D) efficiency of small and medium-sized enterprises (SMEs) and technical efficiency of plug-in hybrid electric vehicles (HEVs). Through these two examples, we can see how the known weaknesses and the unobserved points in the existing method differ in this new method. Hence, it is expected that the proposed method provides another new meaningful ranking result that can show different implications.

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.


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.


2014 ◽  
Vol 2014 ◽  
pp. 1-9 ◽  
Author(s):  
Hongjun Zhang ◽  
Youliang Zhang ◽  
Rui Zhang

Data envelopment analysis (DEA) is a powerful tool for evaluating and improving the performance of a set of decision-making units (DMUs). Empirically, there are usually many DMUs exhibiting “efficient” status in multi-input multioutput situations. However, it is not appropriate to assert that all efficient DMUs have equivalent performances. Actually, a DMU can be evaluated to be efficient as long as it performs best in a single dimension. This paper argues that an efficient DMU of a particular input-output proportion has its own specialty and may also perform poorly in some dimensions. Two DEA-based approaches are proposed to measure the dimension-specific efficiency of DMUs. One is measuring efficiency in multiplier-form by further processing the original multiplier DEA model. The other is calculating efficiency in envelopment-form by comparing with an ideal DMU. The proposed approaches are applied to 26 supermarkets in the city of Nanjing, China, which have provided new insights on efficiency for the managers.


Author(s):  
B. Vittal ◽  
Raju Nellutla ◽  
M. Krishna Reddy

In banking system the evaluation of productivity and performance is the key factor among the fundamental concepts in management. For identify the potential performance of a bank efficiency is the parameter to evaluate effective banking system. To measure the efficiency of a bank selection of appropriate input-output variables is one of the most vital issues. The suitable identification of input-output variables helps to create and identify model in order to evaluate the efficiency and analysis. The Data Envelopment Analysis (DEA) is a mathematical approach used to measure the efficiency of identified Decision Making Units (DMUs). The DEA is a methodology for evaluating the relative efficiency of peer decision making units of identified input/output variables for the financial year 2018-19. In this study the basic DEA CCR, BCC models used for measure the efficiency of DMUs. In addition to these models for minimize the input excess and output shortfall Slack Based Measure (SBM) efficiency used. The SBM is a scalar measure which directly deals with slacks of input, output variables which help in obtain improved efficiency score compare with previous model. The result from the analysis is


2011 ◽  
Vol 50 (4II) ◽  
pp. 685-698
Author(s):  
Samina Khalil

This paper aims at measuring the relative efficiency of the most polluting industry in terms of water pollution in Pakistan. The textile processing is country‘s leading sub sector in textile manufacturing with regard to value added production, export, employment, and foreign exchange earnings. The data envelopment analysis technique is employed to estimate the relative efficiency of decision making units that uses several inputs to produce desirable and undesirable outputs. The efficiency scores of all manufacturing units exhibit the environmental consciousness of few producers is which may be due to state regulations to control pollution but overall the situation is far from satisfactory. Effective measures and instruments are still needed to check the rising pollution levels in water resources discharged by textile processing industry of the country. JEL classification: L67, Q53 Keywords: Data Envelopment Analysis (DEA), Decision Making Unit (DMU), Relative Efficiency, Undesirable Output


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.


2014 ◽  
Vol 2014 ◽  
pp. 1-12 ◽  
Author(s):  
Xishuang Han ◽  
Xiaolong Xue ◽  
Jiaoju Ge ◽  
Hengqin Wu ◽  
Chang Su

Data envelopment analysis can be applied to measure the productivity of multiple input and output decision-making units. In addition, the data envelopment analysis-based Malmquist productivity index can be used as a tool for measuring the productivity change during different time periods. In this paper, we use an input-oriented model to measure the energy consumption productivity change from 1999 to 2008 of fourteen industry sectors in China as decision-making units. The results show that there are only four sectors that experienced effective energy consumption throughout the whole reference period. It also shows that these sectors always lie on the efficiency frontier of energy consumption as benchmarks. The other ten sectors experienced inefficiency in some two-year time periods and the productivity changes were not steady. The data envelopment analysis-based Malmquist productivity index provides a good way to measure the energy consumption and can give China's policy makers the information to promote their strategy of sustainable development.


2020 ◽  
Vol 33 (02) ◽  
pp. 431-445
Author(s):  
Azarnoosh Kafi ◽  
Behrouz Daneshian ◽  
Mohsen Rostamy-Malkhalifeh ◽  
Mohsen Rostamy-Malkhalifeh

Data Envelopment Analysis (DEA) is a well-known method for calculating the efficiency of Decision-Making Units (DMUs) based on their inputs and outputs. When the data is known and in the form of an interval in a given time period, this method can calculate the efficiency interval. Unfortunately, DEA is not capable of forecasting and estimating the efficiency confidence interval of the units in the future. This article, proposes a efficiency forecasting algorithm along with 95% confidence interval to generate interval data set for the next time period. What’s more, the manager’s opinion inserts and plays its role in the proposed forecasting model. Equipped with forecasted data set and with respect to data set from previous periods, the efficiency for the future period can be forecasted. This is done by proposing a proposed model and solving it by the confidence interval method. The proposed method is then implemented on the data of an automotive industry and, it is compared with the Monte Carlo simulation methods and the interval model. Using the results, it is shown that the proposed method works better to forecast the efficiency confidence interval. Finally, the efficiency and confidence interval of 95% is calculated for the upcoming period using the proposed model.


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