DEA Approach with Double Frontiers

Top PDF DEA Approach with Double Frontiers:

A note on “A new approach for the selection of advanced manufacturing technologies: Data envelopment analysis with double frontiers”

A note on “A new approach for the selection of advanced manufacturing technologies: Data envelopment analysis with double frontiers”

Recently, using the data envelopment analysis (DEA) with double frontiers approach, Wang and Chin (2009) proposed a new approach for the selection of advanced manufacturing technologies: DEA with double frontiers and a new measure for the selection of the best advanced manufacturing technologies (AMTs). In this note, we show that their proposed overall performance measure for the selection of the best AMT has an additional computational burden. Moreover, we propose a new measure for developing a complete ranking of AMTs. Numerical examples are examined using the proposed measure to show its simplicity and usefulness in the AMT selection and justification.
Show more

7 Read more

Super efficiency model in front of MPSS

Super efficiency model in front of MPSS

[4] Wang, Y.M., Chin, K.S., 2007. Discriminating DEA efficient candidates by considering their least relative total scores. Journal of Computational and Applied Mathematics 206, 209–215. [5] Wang, Y.M., Chin, K.S., 2009. A new approach for the selection of advanced manufacturing technologies: DEA with double frontiers. International Journal of Production Research 47, 6663–6679. [6] Wang, Y.M., Lan, Y.X., 2011. Measuring Malmquist productivity index: a new approach based on double frontiers data envelopment analysis. Mathematical and Computer Modelling 54, 2760–2771.
Show more

6 Read more

Estimating Most Productive Scale Size with Double Frontiers in Data Envelopment Analysis using Negative Data

Estimating Most Productive Scale Size with Double Frontiers in Data Envelopment Analysis using Negative Data

model is the extension of Farrel measure used for multiple inputs and outputs and it deals with the calculation of radial efficiency in PPS under Constant returns to scale ( CRS ) and it has two characteristics of input orientation (envelopment form), and output orientation (multiplier form), that all the input and output values are non negative, whereas in many applications, the negative inputs and outputs could be appear as loss when the net profit is an output variable. Later on, various approaches presented which have the way for using negative data in this model and other models like the Semi-Oriented measurement. The DEA was presented based on the need for scientific method to analyze economic unit’s performance. Therefore, returns to scale ( RTS ) as an economical concept could be evaluated under DEA models. Indeed, returns to scale is related to the economical interpretation of the efficiencies of DEA . Returns to scale is the effect of means of production over production and has three type of “increasing”, “decreasing” and “constant”. In special case, if a DMU has a Constant returns to scale ( CRS ) – when any multi of inputs, Produce the same multi of outputs, than the DMU in this state, has the highest MPSS which represent a very important in DEA and connected with the RTS . The
Show more

7 Read more

Evaluating the efficiency and classifying the fuzzy data: A DEA based ‎approach

Evaluating the efficiency and classifying the fuzzy data: A DEA based ‎approach

In real applications, there are many situations in which measures can play either the role of input or output while measures are vague. For this pur- pose, the present paper has been proposed two models to evaluate the performance and to deter- mine the status of fuzzy flexible measures where flexible and fuzzy data exist. Actually, fuzzy DEA models have been modified and extended. In the proposed models, similar to the prior mod- els for evaluating the efficiency of DMUs and clas- sifying flexible measures, selecting suitable M is a significant subject for calculating accurate effi- ciency. Numerical examples have been provided to illustrate the technique.
Show more

7 Read more

A Genetic-DEA Approach to Reveal Property Rights Priorities

A Genetic-DEA Approach to Reveal Property Rights Priorities

High IPRI countries which are also rich in terms of GDP/c are better fitted to our model. That means, such countries have little uncertainty gaining wealth through heightening property rights. As we can see, in Table 6, they just have to give money to creative people that need protection from copyright piracy. We see more uncertainty, technically as double, in other clusters. Taking our study into the fuzzy side, we look at the subsequent error for each cluster. We took IPRI components as inputs of economic engine and evaluated the efficiency of each country using data envelopment analysis. US and China were two countries with very high IPRI efficiency relative to other countries. This indicates that US, which has high IPRI and high GDP has efficiently utilized IPRI components to enhance the economic performance and shall follow GA recommendation to perform even better. China which does not have a high IPRI ranking is also showing a perfect IPRI efficiency related to other countries. This indicated the China’s adequate quality of property rights policy making and suggests this country to follow GA recommendation foe Low cluster.
Show more

16 Read more

Benchmarking a country for efficiency improvement: a DEA-based approach

Benchmarking a country for efficiency improvement: a DEA-based approach

There is a plethora of research measuring the efficiency of the SMEs of different countries. Most of the research is based on developed countries. Reverte and Guzman (2010) have measured the relative efficiency of 1939 Spanish SMEs using DEA as a measuring tool. In the literature, there are also studies calculating the efficiency of SMEs in Turkey with DEA. Bayraktar, Demirbag, Koh, Tatoglu, and Zaim (2009) have compared the supply chain management application efficiencies of Turkish and Bulgarian SMEs via DEA. In the study of supply chain management, Günay (2015) has measured the efficiency of 10 food companies processed in BIST SME market with the use of the BCC model of input-oriented DEA. Akin (2010) has measured the relative efficiencies of 115 small enterprises conducting activities in the Western Mediterranean Region of Turkey with DEA. Most of the research focused on firm-level analysis. Some examples in- clude Pitt and Lee (1981) on weaving firms in Indonesia; Little, Mazumdar, and Page (1987) on five industrial sectors in India; and Cortes (1987) on metalworking and food processing firms in Colombia. Determining entrepreneurial efficiency as a whole is miss- ing in previous literatures. Very little studies have worked on country-based entrepreneur- ial efficiency that compares countries on the basis of their efficiency in consuming the resources and producing the outputs. Without proper combination of available input fac- tor, a country will be off of the production possibilities frontier. A sufficient number of re- search now exists on distance functions (Cooper, Seiford, & Zhu, 2011), but positioning a country in terms of efficiency score, understanding the efficiency differences at a country level, and identifying an appropriate benchmark for each county, to the best of our know- ledge, are empirically untested.
Show more

17 Read more

A DEA Model toward Efficiency Assessment of Olive Oil Cultivation

A DEA Model toward Efficiency Assessment of Olive Oil Cultivation

improving energy use efficiency of greenhouse cucumber production using DEA approach. Optimization of energy consumption[r]

15 Read more

Evaluation and ranking of suppliers with fuzzy DEA and PROMETHEE approach

Evaluation and ranking of suppliers with fuzzy DEA and PROMETHEE approach

Supplier selection is a multi-Criteria problem. This study proposes a hybrid model for supporting the suppliers’ selection and ranking. This research is a two-stage model designed to fully rank the suppliers where each supplier has multiple Inputs and Outputs. First, the supplier evaluation problem is formulated by Data Envelopment Analysis (DEA), since the regarded decision deals with uncertainly and ambiguity of data as well as experts and manager linguistic judgment the proposed model is equipped with Fuzzy approach, then in this research we use of Fuzzy DEA for first stage. In the second stage, efficient suppliers are ranked with Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) model. Fuzzy DEA PROMETHEE ranking does not replace the DEA classification model; rather it furthers the analysis by providing full ranking in DEA context for efficient suppliers.
Show more

9 Read more

Additive decomposition in two stage DEA: An alternative approach

Additive decomposition in two stage DEA: An alternative approach

We presented in this paper an alternative model for two-stage DEA under the assumption of series relationship between the two stages. Our modeling approach is based on the selection of an output orientation for the first stage and an input orientation for the second stage. In this manner, the intermediate measures are used as pivot that links the efficiency assessment models for the two stages in a single linear program. The proposed CRS model is straightforwardly extended to fit VRS situations. The additive efficiency decomposition approach coined in this paper is straightforward and, thus, free of the weighting assumption made in the original additive model [5]. Testing our models with data sets taken from previous studies, shows that the results obtained are comparable to those reported in the literature.
Show more

24 Read more

Performance Evaluation of Banks in India – A Shannon-DEA Approach

Performance Evaluation of Banks in India – A Shannon-DEA Approach

Data Envelopment Analysis (DEA) is widely used in banking sector to measure the efficiency of the banks. This paper evaluates the performance of the banks in India using cost, revenue and profit models of DEA and comes out with a comprehensive efficiency index for banks, by combing the efficiency scores of various DEA models, using the Shannon entropy. In general, the banks included in this study are sound in terms of total assets, manpower, branch network etc., and they have been ranked based on their performance, which depends on optimal utilization of select variables. In order to measure the degree of agreement between rankings of banks based on three different models, namely cost, revenue and profit model, Kendall’s coefficient of concordance have been used. The study observes that Shannon-DEA approach provides a comprehensive efficiency index for banks and a reasonable way of ranking.
Show more

18 Read more

Ranking of major states in india using data envelopment analysis (DEA) approach

Ranking of major states in india using data envelopment analysis (DEA) approach

Data Envelopment Analysis (DEA) is a nonparametric method used in operations research and economics to estimate the production frontiers. It is a linear programming method used performance of homogeneous organizational units and is widely used in banking industries, where the bank branch will be the unit of measurement (Thanassoulis, 1999). DEA is not only used in banking, but also to analyze the ctors such as industrial firms, universities, military operations, banking, and healthcare or hospitals. In a study, it is used to evaluate the management of 60 Missouri Commercial Banks for the period from 1984 to three cost indices of the UK Department of Health to benchmark NHS Trusts. He compares the efficiency rankings from the cost indices with those obtained by the use of DEA and Stochastic Cost Frontier (SCF) Analysis. In this study, the DEA was applied to rank the states within Indian Territory based on some inputs and outputs of Factor Sector taken from the Economic Appraisal of Tamil Nadu. The procedure for ranking of states using DEA approach is clearly described in the flow chart presented in the next
Show more

7 Read more

Efficiency and Effectiveness of State Transport Undertakings in India: A DEA Approach

Efficiency and Effectiveness of State Transport Undertakings in India: A DEA Approach

DOI: 10.4236/tel.2017.76111 1651 Theoretical Economics Letters In the above equations  denotes the elasticity measure and D denotes the values of objective function in the corresponding linear programing formulation of the VRS model. The subscript o is for output orientation. Values of ξ are obtained from the solutions of the linear program formulation of the DEA. We have calculated elasticities using above formula for each firm, in each time pe- riod and for the two output scenario. In this way, we obtained not only returns to scale characteristics but also a scale elasticity measure. A value of  equal to (or very close to) 1 corresponds to constant returns to scale scenario, a value less than 1 corresponds to decreasing returns to scale scenario and a value greater than 1 corresponds to increasing returns to scale scenario. This is a quantitative estimate of returns to scale. We emphasize that for scale elasticity estimation we have used output oriented DEA because the formula for input oriented DEA may fail to give finite elasticity measure when the value of objective function of the DEA linear program and the scale characteristic variable ξ are equal in magnitude but ξ is negative in sign [30]. Next we partitioned our dataset, with two outputs, in three categories (Large, Medium and Small sized respectively), using k-means clustering for each year, in order to establish relationship be- tween firm size and RTS estimate.
Show more

14 Read more

Ranking Of Public Sector Banks - Two Stage Dea Approach

Ranking Of Public Sector Banks - Two Stage Dea Approach

In Data envelopment analysis choice of too many inputs and too many outputs manifest in too many efficient production units, forcing DEA to loose its discriminatory power. Small number of inputs and outputs mask the truly efficient production plans as inefficient. In the envelopment models degrees of freedom increase with sample size as we notice in statistical theory of estimation. However, degrees of freedom decrease with increase in the number of inputs and/or outputs. A rule of thumb that serves as a guide to select the sample size is,
Show more

6 Read more

Identification of Congestion with DEA Approach Applied to a Sample of Turkish Universities

Identification of Congestion with DEA Approach Applied to a Sample of Turkish Universities

456 reductions in one or more inputs can be associated with increases in one or more outputs-without worsening any other input or output. Proceeding in reverse, congestion occurs when increases in one or more inputs can be associated with decreases in one or more outputs-without improving any other input or output. According to the inefficiency definition, inefficiency refers to waste which represents an unnecessary expenditure of resources for some input that could have been avoided without having had to augment other inputs or reduce any outputs. And congestion is a severe form of inefficiency in the sense that benefits in both inputs and outputs could be secured by reducing the congesting input amounts [4]. Consequently for a DMU evaluated to be fully (100%) DEA efficient, there must be evidences to show that it is not possible to improve any of its inputs or outputs without worsening some of its other inputs or outputs [5]. Hence, for a DMU to be fully efficient there must be no waste [22].
Show more

13 Read more

DETERMINANTS OF PERFORMANCE EFFICIENCY IN NIGERIAN BANKING INDUSTRY: A DEA APPROACH

DETERMINANTS OF PERFORMANCE EFFICIENCY IN NIGERIAN BANKING INDUSTRY: A DEA APPROACH

The study uses the DEA approach to investigate the determinants of performance efficiency of 19 selected banks in Nigeria for the year 2009. In order to have a robust empirical analysis, three DEA performance efficiency measure are employed to include the constant returns to scale (CRS), variable returns to scale (VRS) and scale. The independent variables (determinants) of bank efficiency used in the study include Bank size, Bank age, Board independence and Bank ownership structure. The measurement of the variables is demonstrated below in the table below.
Show more

13 Read more

Evaluating Iberian seaport competitiveness using an alternative DEA approach

Evaluating Iberian seaport competitiveness using an alternative DEA approach

The main limitation of this study derives from not considering all Iberian seaports in the analysis and hence preventing any conclusions onsmaller seaports. Therefore, the conclusions presented here are limited to the selected sample of the most representative Iberian seaports. As DEA analysis cal- culates the efficiency based on the selected DMU ’ s, the results probably would be different if the sample was different. In this sense, we would suggest the study be applied to all Iberian seaports. We would also recommend that the study be applied to the same seaports for the period since 2009 to analyse and compare i) the effects of the global financial crisisand the recovery, or otherwise, of seaports, ii) the effect of the latest restructurings, for example, Aveiro seaport’s link to the national railway network, operational in 2010, provides for the movement of around 600,000 t, and iii) the effects of the enlargement of the Panama Canal from 2013 that will impact on the world’s shipping routes and the positioning of Iberian seaports.
Show more

9 Read more

A DEA approach to regional development

A DEA approach to regional development

That is, DEA seeks to determine which of the N DMUs determine an envelopment surface or an efficient frontier. DMUs lying on the surface are deemed efficient, while DMUs that do not lie on the frontier are termed inefficient, and the analysis provides a measure of their relative efficiency. As mentioned, the solution of the model dictates the solution of (N) linear programming problems, one for each DMU. It provides us with an efficiency measure for each DMU and shows by how much each of a DMU’s ratios should be improved if it were to perform at the same level as the best performing prefectures in the sample. In this way we extract an efficiency ratio for each prefecture, which shows us by how much the ratios of each prefecture could be improved so as to reach the same level of efficiency with that of the most efficient prefectures in the sample.
Show more

33 Read more

Efficiency of MENA Region's Health Systems:  Using DEA Approach

Efficiency of MENA Region's Health Systems: Using DEA Approach

Efficiency evaluation plays an important role in improving quality and equity and decision support services, [6]. It can better mobilize available resources and provide decision makers and health managers with the information and evidence they need. Efficiency seeks to determine the extent to which the inputs (resources) of the health system are used to achieve health system objectives, [7]. According to Thoral, [8], in a context where medicine is becoming more complex, medical technologies are rapidly developing and diffusing, and economic constraints are increasing, the aim of the evaluation is to maximize efficiency under the constraint of resource allocation. Thus, the pursuit of efficiency should be a central objective of policy makers and managers, and to this end better tools for measuring and understanding efficiency are needed, [7]. As a result, in this work, we assess the efficiency of MENA countries health systems using the nonparametric approach, data envelopment analysis DEA.
Show more

6 Read more

Performance Analysis of Listed Companies in the UAE Using DEA Malmquist Index Approach

Performance Analysis of Listed Companies in the UAE Using DEA Malmquist Index Approach

Data Envelopment Analysis (DEA) is becoming an increasingly popular tool for assessing the relative performance of industries and companies. By apply- ing DEA theory to the non-financial sector, the relative efficiency of 27 listed corporations in the United Arab Emirates (UAE) has been analyzed in this paper. The focus of the study has been on the impact of the financial crisis and the recovery thereafter. Further, the productivity change was decomposed into technical efficiency change and technological change by using the non-para- metric Malmquist Productivity Index (MPI) over the period from 2007 to 2014. Based on Malmquist analysis, we find that the most efficient industries during the post-crisis period were food and beverages, telecommunication and pharmaceuticals. In contrast, the sectors that were adversely affected by the crisis were services, real estate, construction and cements. The break-up of the TFP indicated that the efficiency indices in the top performing industries were driven by technological improvements or frontier effects. The top-per- forming companies in the UAE during the 2007-14 period demonstrated in- novation-led growth, aided by the use of better technology, investments in capital equipment, and adoption of new production processes.
Show more

19 Read more

Ranking efficient DMUs using the Tchebycheff norm with fuzzy data in DEA

Ranking efficient DMUs using the Tchebycheff norm with fuzzy data in DEA

in DEA by using tchebycheff norm; since, inputs and outputs are fuzzy. Therefore, it may be obtained a fuzzy rank for decision making units hence we developed this method for ranking DMUs with fuzzy data. We illustrated our model by a numerical example and compared with fuzzy 𝐿 1 norm proposed by Jahanshahloo et al. [9]. We proposed our model for triangular fuzzy

18 Read more

Show all 10000 documents...

Related subjects