Ranking Models in Data Envelopment Analysis Technique

Author(s):  
Z. Moghaddas ◽  
M. Vaez-Ghasemi

Data envelopment analysis as a mathematical technique formulated based on linear programming problems which enables decision makers to evaluate Decision-Making Units (DMUs) with multiple inputs and outputs. One of the important issue in DEA technique which is widely discussed by researchers is ranking efficient units. Since these units are not comparable among each other. Ranking DMUs is an important issue in theory and practice and many applications in this field are performed. Considering the ranking order senior managers try to better guiding the system. In literature there exist different ranking models each of which tries to make improvements in this subject. Many researchers try to make advances in theory of ranking units and overcome the difficulties exist in presented methods. Each of the existing ranking method has its own specialties and advantages. As each of the existing method can be viewed from different aspects, it is possible that somewhat these groups have overlapping with the others.

2014 ◽  
Vol 29 (2) ◽  
Author(s):  
Stanko Dimitrov

AbstractIn this paper we compare the ordinal rankings generated through Data Envelopment Analysis (DEA) methods to ordinal rankings generated by human decision makers. Through eliciting the total rank ordering for approximately 100 individuals on all of the four different datasets of Decision Making Units (DMUs), we compare the rankings generated by individuals to those generated by ten DEA methods. We observe that depending on the characteristics of the dataset one of the DEA methods performs better than the others in matching human decision makers.


2014 ◽  
Vol 16 (04) ◽  
pp. 1005-1021 ◽  
Author(s):  
Jie Wu ◽  
Xiang Lu ◽  
Dong Guo ◽  
Liang Liang

Data envelopment analysis (DEA) has recently gained great popularity in modeling environmental performance because it provides condensed information to decision makers when the production process includes undesirable outputs. In this paper, we develop a new slacks-based efficiency measurement for modeling environmental performance using the environmental DEA technology. The proposed index has more theoretical justification, and distinguishes among different decision making units (DMUs) better in practice. Then we further extend it to the nonoriented index with double aim of increasing desirable outputs and reducing undesirable outputs. Finally, we calculate the index for each of 25 OECD European countries in a model of CO2 emission performance from 2007 to 2009 and the results obtained are presented.


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.


2020 ◽  
Vol 1 (1) ◽  
pp. 18-24
Author(s):  
Annisa Nur Hakim ◽  
A Jajang W Mahri ◽  
Aas Nurasyiah

Abstract.     Baitul Maal Wat Tamwil has experienced development in recent years. However, based on BMT performance data in West Bandung regency is less optimal. It is known that there are one efficient BMTs in West Bandung Regency and three BMTs that are inefficient. The cause of BMT's less optimal performance is inefficiency in operational activities. This study aims to determine the level of efficiency of BMT in West Bandung 2011-2017 period and find out the causes of inefficiency. This study uses secondary data from four BMTs in West Bandung District which are sampled. The research method used is descriptive method with Data Envelopment Analysis (DEA) analysis technique which is to measure the level of efficiency of a company. Input variables used are operating expenses, total assets, and TPF. Furthermore, the output variables used are SHU, income, and financing. Based on the results of research conducted, the conditions of the BMT in West Bandung Regency have not been perfectly efficient. There are three BMTs that have experienced inefficiencies including BMT Dana Ukhuwah, BMT Mustama, and BMT Rabbani. Keywords.          Efficiency, Baitul Maal Wat Tamwil, Data Envelopment Analysis


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