Showing papers on "Data envelopment analysis published in 2001"

A Slacks-based Measure of Super-Efficiency in Data Envelopment Analysis

Abstract: In most models of Data Envelopment Analysis (DEA), the best performers have the full efficient status denoted by unity (or 100%), and, from experience, we know that usually plural Decision Making Units (DMUs) have this “efficient status”. To discriminate between these efficient DMUs is an interesting subject. This paper addresses this “super-efficiency” issue by using the slacks-based measure (SBM) of efficiency, which the author proposed in his previous paper [European Journal of Operational Research 130 (2001) 498]. The method differs from the traditional one based on the radial measure, e.g. Andersen and Petersen model, in that the former deals directly with slacks in inputs/outputs, while the latter does not take account of the existence of slacks. We will demonstrate the rationality of our approach by comparing it with the radial measure of super-efficiency. The proposed method will be particularly useful when the number of DMUs are small compared with the number of criteria employed for evaluation.

Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software

Abstract: (2001). Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software. Journal of the Operational Research Society: Vol. 52, No. 12, pp. 1408-1409.

Introduction to the theory and application of data envelopment analysis

Abstract: Keywords: DAE ; PRODUCTIVITE Reference Record created on 2004-09-07, modified on 2016-08-08

Efficiency measurement of selected Australian and other international ports using data envelopment analysis

Abstract: Available studies have not provided a satisfactory answer to the problem of making international comparisons of port efficiency. This study applies data envelopment analysis (DEA) to provide an efficiency measurement for four Australian and twelve other international container ports. While DEA has been applied to a wide number of different situations where efficiency comparisons are required, this technique has not previously been applied to ports. The DEA technique is useful in resolving the measurement of port efficiency because the calculations are non-parametric, can handle more than one output and do not require an explicit a priori determination of relationships between output and inputs, as is required for conventional estimation of efficiency using production functions. The ports of Melbourne, Rotterdam, Yokohama and Osaka are found to be the most inefficient ports in the sample, based on constant and variable returns to scale assumptions, mainly due to the enormous slack in their container berths, terminal area and labor inputs. The study also draws some policy implications for ports and recommends certain areas for future research.

Non-parametric Productivity Analysis with Undesirable Outputs: An Application to the Canadian Pulp and Paper Industry

Abstract: This article extends the Chavas-Cox approach to non-parametric analysis by incorporating undesirable outputs to provide a more complete representation of the production technology. Inner and outer non-parametric technology bounds are constructed. The methods are illustrated with application to time series data for the Canadian pulp and paper industry. Conventional measures that ignore changes in pollutant outputs underestimate true productivity growth. Further, there is a large gap between estimates generated with reference to inner and outer bounds to the technology, suggesting that researchers need to be aware of the limitations of results derived from analyses relying only on DEA methods. Copyright 2001, Oxford University Press.

Data Envelopment Analysis

Abstract: A system in which data for controlling amounts of ink for a number of printing machines, having a variety of printing plates, are measured with one measuring device. This invention provides a printing image area measuring device which can detect a printing image area with high accuracy even if the surface of a printing plate is uneven, which device is simple in construction, low in manufacturing cost and high in measurement accuracy, and which can provide in-line automatic measurement in a printing line.

Investigating technical and scale efficiencies of australian universities through data envelopment analysis

Abstract: Performance indicators in the public sector have often been criticised for being inadequate and not conducive to analysing efficiency. The main objective of this study is to use data envelopment analysis (DEA) to examine the relative efficiency of Australian universities. Three performance models are developed, namely, overall performance, performance on delivery of educational services, and performance on fee-paying enrolments. The findings based on 1995 data show that the university sector was performing well on technical and scale efficiency but there was room for improving performance on fee-paying enrolments. There were also small slacks in input utilisation. More universities were operating at decreasing returns to scale, indicating a potential to downsize. DEA helps in identifying the reference sets for inefficient institutions and objectively determines productivity improvements. As such, it can be a valuable benchmarking tool for educational administrators and assist in more efficient allocation of scarce resources. In the absence of market mechanisms to price educational outputs, which renders traditional production or cost functions inappropriate, universities are particularly obliged to seek alternative efficiency analysis methods such as DEA.

Introduction to the Theory and Application of Data Envelopment Analysis: A Foundation Text with Integrated Software

Abstract: The book aims to introduce the reader to DEA in the most accessible manner possible It is specifically aimed at those who have had no prior exposure to DEA and wish to learn its essentials, how it works, its key uses, and the mechanics of using it The latter will include using DEA software Students on degree or training courses will find the book especially helpful The same is true of practitioners engaging in comparative efficiency assessments and performance management within their organisation Examples are used throughout the book to help the reader consolidate the concepts covered Table of content: List of Tables List of Figures Preface Abbreviations 1 Introduction to Performance Measurement 2 Definitions of Efficiency and Related Measures 3 Data Envelopment Analysis Under Constant Returns to Scale: Basic Principles 4 Data Envelopment Analysis under Constant Returns to Scale: General Models 5 Using Data Envelopment Analysis in Practice 6 Data Envelopment Analysis under Variable Returns to Scale 7 Assessing Policy Effectiveness and Productivity Change Using DEA 8 Incorporating Value Judgements in DEA Assessments 9 Extensions to Basic DEA Models 10 A Limited User Guide for Warwick DEA Software Author Index Topic Index References

X-efficiency in Australian banking: An empirical investigation

Abstract: This paper empirically investigates the x-eAciency (technical and allocative) in Australian banks. A non-parametric method of Data Envelopment Analysis (DEA) has been used to arrive at the eAciency scores. Banks in this sample were found to have low levels of overall eAciency compared with the banks in the European countries and in the US. The results indicate that, as a source of overall ineAciency, the technical component was more important than the allocative component. Thus, the ineAciency in Australian banks can be attributed to wasting of inputs (technical ineAciency) rather than choosing the incorrect input combinations (allocative ineAciency). Domestic banks were found to be more eAcient than foreign owned banks. The study has important implications such as guiding the government policy regarding deregulation and mergers. Since the study pinpoints the sources of ineAciency, it would also help banks with strategic planning. ” 2001 Elsevier Science B.V. All rights reserved.

Efficiency in Japanese Banking: An Empirical Analysis

Abstract: This paper utilises the non-parametric frontier approach, data envelopment analysis, to analyse the technical and scale efficiency in Japanese banking using a recent cross-section sample. Efficiency analysis is conducted across individual banks, bank types and bank size groups. Following Berger and Humphrey [Eur. J. Oper. Res. 98 (1997) 175], problem loans are controlled for as an exogenous influence on bank efficiency. Powerful size-efficiency relationships are established with respect to both technical and scale efficiency. Furthermore, the logic of the recent large-scale merger wave in Japan is questioned as the larger (City) banks are generally found to be operating above the minimum efficient scale and to have limited opportunity to gain from eliminating X-inefficiencies. The opposite result is found for the smaller banks. Finally, the results suggest that controlling for the exogenous impact of problem loans is important in Japanese banking, especially for the smaller regional banks.

Alternative methods to examine hospital efficiency: data envelopment analysis and stochastic frontier analysis.

Abstract: There has been increasing interest in the ability of different methods to rank efficient hospitals over their inefficient counterparts. The UK Department of Health has used three cost indices to benchmark NHS hospitals (Trusts). This study uses the same dataset and compares the efficiency rankings from the cost indices with those obtained using Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). The paper concludes that the methods each have particular strengths and weaknesses and potentially measure different aspects of efficiency. Several specifications should be used to develop ranges of inefficiency to act as signalling devices rather than point estimates. It is argued that differences in efficiency scores across different methods may be due to random "noise" and reflect data deficiencies. The conclusions concur with previous findings that there are not truly large efficiency differences between Trusts and savings from bringing up poorer performers would in fact be quite modest.

Supplier Evaluation and Rationalization via Data Envelopment Analysis: An Empirical Examination

Abstract: SUMMARY Strategic evaluation of supplier performance assists firms in improving their operations across a variety of dimensions. Specifically, it aids in supplier process improvement, which in turn enhances firm performance, allows for optimal allocation of resources for supplier development programs, and assists managers in restructuring their supplier network based on performance. In order to address these issues, this article proposes a methodology for effective supplier performance evaluation based on data envelopment analysis (DEA), a multi-factor productivity analysis technique. The efficiencies derived from the DEA model are utilized in conjunction with managerial performance ratings in identifying supplier clusters, which are categorized into high performers and efficient (HE), high performers and inefficient (HI), low performers and efficient (LE), and low performers and inefficient (LI). Effective benchmarks from the HE cluster are identified for improving the operations of suppliers in the HI, LE, and LI clusters. Finally, managerial insights and implications from the study are discussed.

Computational aspects of alternative portfolio selection models in the presence of discrete asset choice constraints

Abstract: We consider the mean-variance (M-V) model of Markowitz and the construction of the risk-return efficient frontier. We examine the effects of applying buy-in thresholds, cardinality constraints and transaction roundlot restrictions to the portfolio selection problem. Such discrete constraints are of practical importance but make the efficient frontier discontinuous. The resulting quadratic mixed-integer (QMIP) problems are NP-hard and therefore computing the entire efficient frontier is computationally challenging. We propose alternative approaches for computing this frontier and provide insight into its discontinuous structure. Computational results are reported for a set of benchmark test problems.

Data envelopment analysis

Abstract: This review introduces the history and present status of data envelopment analysis (DEA) research, particularly the evaluation process. And extensions of some DEA models are also described. It is pointed out that mathematics, economics and management science are the main forces in the DEA development, optimization provides the fundamental method for the DEA research, and the wide range of applications enforces the rapid development of DEA.

An Illustrative Application of Idea Imprecise Data Envelopment Analysis to a Korean Mobile Telecommunication Company

Abstract: Data Envelopment Analysis (DEA) models, as ordinarily employed, assume that the data for all inputs and outputs are known exactly. In some applications, however, a number of factors may involve imprecise data, which take forms such as ordinal rankings and knowledge only of bounds. Here we provide an example involving a Korean mobile telecommunication company. The Imprecise Data Envelopment Analysis (IDEA) method we use permits us to deal not only with imprecise data and exact data but also with weight restrictions as in the (now) widely used "Assurance Region" (AR) and "cone-ratio envelopment" approaches to DEA. We also show how to transform AR bounds on thevariables, obtained from managerial assessments, for instance, intodata adjustments. This involves an extended IDEA model, which we refer to as AR-IDEA. All these uses are illustrated by an example application directed to evaluate efficiencies of branch offices of a telecommunication company in Korea.

The Fixed Weighting Nature of A Cross-Evaluation Model

Abstract: Cross-evaluation has been touted as a powerful extension of Data Envelopment Analysis that provides, not only a unique ordering among the Decision Making Units (DMUs), but also eliminates unrealistic weighting schemes without requiring the elicitation of weight restrictions from application area experts. The goal of this paper is to prove, in the single-input, multiple-output case, cross-evaluation implicitly uses a single fixed set of weights. We demonstrate how this unseen fixed set of weights may still be unrealistic.

Sales performance measurement in bank branches

Abstract: Studies of bank branch performance have, to date, concentrated on obtaining a single perspective of efficiency. As the financial services industry has intensified, banks have increasingly engated in a proactive, differentiated and customer-based strategy in retail banking in which the sales component of the bank branch activity is emphasized. With the emerging sales culture within banks, as discussed earlier, there is a need to evaluate both sales and service performance. Cook et al. [12] have proposed a model to evaluate simultaneously the sales, service, and aggregate efficiencies of a bank branch. This model accounted for the fact that inputs, in particular resources, are often shared among these functions. In this paper, we extend the data envelopment analysis additive model using goal programming concepts. We thereby derive optimal efficiency scores while taking into account non-volume related activities, that is those involving resources that cannot be assigned to a specific input or output. Again, the proposed model derives an optimal split of the shared resources that maximizes the aggregate efficiency.