Super-efficiency and stability intervals in additive DEA

This is a PDF file of an unedited manuscript that has been accepted for publication in Journal of the Operational Research Society. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain. The final version will be available at: http://dx.doi.org/10.1057/jors.2012.1

Multi crteria decision making and its applications : a literature review

This paper presents current techniques used in Multi Criteria Decision Making (MCDM) and their applications. Two basic approaches for MCDM, namely Artificial Intelligence MCDM (AIMCDM) and Classical MCDM (CMCDM) are discussed and investigated. Recent articles from international journals related to MCDM are collected and analyzed to find which approach is more common than the other in MCDM. Also, which area these techniques are applied to. Those articles are appearing in journals for the year 2008 only. This paper provides evidence that currently, both AIMCDM and CMCDM are equally common in MCDM

Application of multi-criteria decision analysis for investment strategies in the Indian equity market

In the Indian equity market, the Systematic Investment Plan (SIP) is the most popular strategy due to its convenience for disciplined investing regardless of market conditions. This study analyzes the excess returns of an extensive dataset of listed Indian companies from 2010 to 2019, along with a value-based version of the Multi-Criteria Decision Analysis (MCDA), to identify top performing stocks, based on their sectors and market capitalization. The findings of the study provide empirical evidence of Value Averaging (VA) as a viable alternative strategy over SIP (also known as Dollar Cost Averaging or Rupee Cost Averaging) as 352 out of 359 companies yielded higher returns under VA. The superiority of the VA strategy over the SIP was particularly marked in the consumer goods, financial services and industrial manufacturing sectors, with a clear dominance of small cap companies. The results also show that risk factors for VA strategy play an important role and should be taken into account, rather than base investment decisions on excess returns alone. The efficiency scores of individual stocks provide important insights for mutual funds, financial brokers and individual investors in India

Multiple Criteria Decision Analysis: Classification Problems and Solutions

Multiple criteria decision analysis (MCDA) techniques are developed to address challenging classification problems arising in engineering management and elsewhere. MCDA consists of a set of principles and tools to assist a decision maker (DM) to solve a decision problem with a finite set of alternatives compared according to two or more criteria, which are usually conflicting. The three types of classification problems to which original research contributions are made are Screening: Reduce a large set of alternatives to a smaller set that most likely contains the best choice. Sorting: Arrange the alternatives into a few groups in preference order, so that the DM can manage them more effectively. Nominal classification: Assign alternatives to nominal groups structured by the DM, so that the number of groups, and the characteristics of each group, seem appropriate to the DM. Research on screening is divided into two parts: the design of a sequential screening procedure that is then applied to water resource planning in the Region of Waterloo, Ontario, Canada; and the development of a case-based distance method for screening that is then demonstrated using a numerical example. Sorting problems are studied extensively under three headings. Case-based distance sorting is carried out with Model I, which is optimized for use with cardinal criteria only, and Model II, which is designed for both cardinal and ordinal criteria; both sorting approaches are applied to a case study in Canadian municipal water usage analysis. Sorting in inventory management is studied using a case-based distance method designed for multiple criteria ABC analysis, and then applied to a case study involving hospital inventory management. Finally sorting is applied to bilateral negotiation using a case-based distance model to assist negotiators that is then demonstrated on a negotiation regarding the supply of bicycle components. A new kind of decision analysis problem, called multiple criteria nominal classification (MCNC), is addressed. Traditional classification methods in MCDA focus on sorting alternatives into groups ordered by preference. MCNC is the classification of alternatives into nominal groups, structured by the DM, who specifies multiple characteristics for each group. The features, definitions and structures of MCNC are presented, emphasizing criterion and alternative flexibility. An analysis procedure is proposed to solve MCNC problems systematically and applied to a water resources planning problem

A systematic review of application of multi-criteria decision analysis for aging-dam management

[EN] Decisions for aging-dam management requires a transparent process to prevent the dam failure, thus to avoid severe consequences in socio-economic and environmental terms. Multiple criteria analysis arose to model complex problems like this. This paper reviews specific problems, applications and Multi-Criteria Decision Making techniques for dam management. Multi-Attribute Decision Making techniques had a major presence under the single approach, specially the Analytic Hierarchy Process, and its combination with Technique for Order of Preference by Similarity to Ideal Solution was prominent under the hybrid approach; while a high variety of complementary techniques was identified. A growing hybridization and fuzzification are the two most relevant trends observed. The integration of stakeholders within the decision making process and the inclusion of trade-offs and interactions between components within the evaluation model must receive a deeper exploration. Despite the progressive consolidation of Multi-Criteria Decision Making in dam management, further research is required to differentiate between rational and intuitive decision processes. Additionally, the need to address benefits, opportunities, costs and risks related to repair, upgrading or removal measures in aging dams suggests the Analytic Network Process, not yet explored under this approach, as an interesting path worth investigating.This research was funded by the Spanish Ministry of Economy and Competitiveness along with FEDER funding (Projects BIA201456574-R and ECO2015-66673-R).Zamarrón-Mieza, I.; Yepes, V.; Moreno-Jiménez, JM. (2017). A systematic review of application of multi-criteria decision analysis for aging-dam management. Journal of Cleaner Production. 147:217-230. https://doi.org/10.1016/j.jclepro.2017.01.092S21723014

A novel modified Khatter’s approach for solving Neutrosophic Data Envelopment Analysis

The evaluation of the performance of decision-making units (DMUs) that use comparable inputs to produce related outputs can be accomplished through a non-parametric linear programming (LP) technique called Data Envelopment Analysis (DEA). However, the observed data are occasionally imprecise, ambiguous, inadequate, and inconsistent which may result in incorrect decision-making when these criteria are ignored. Neutrosophic Set (NS) is an extension of fuzzy sets which is used to represent unclear, erroneous, missing, and wrong information. This paper proposes a neutrosophic version of the DEA model, and a novel solution technique for Neutrosophic DEA (Neu-DEA) model. The possibility mean for triangular neutrosophic number (TNN) is redefined and modified the Khatter’s approach to convert directly the Neu-DEA model into its crisp DEA model. As a result, the Neu-DEA model is simplified to a crisp LP problem with a risk parameter (δ ∈ [0, 1]) that represents the attitude of the decision-maker towards taking risk. The efficiency score of the DMUs is computed by using various risk factors and divided into efficient and inefficient groups. The ranking of DMUs is determined by calculating the mean efficiency score of DMUs, which is based on various risk parameters. A numerical example is illustrated here to describe the suggested approach’s flexibility and authenticity and compared with some of the existing approaches

Using MACBETH method for supplier selection in manufacturing environment

Supplier selection is always found to be a complex decision-making problem in manufacturing environment. The presence of several independent and conflicting evaluation criteria, either qualitative or quantitative, makes the supplier selection problem a candidate to be solved by multi-criteria decision-making (MCDM) methods. Even several MCDM methods have already been proposed for solving the supplier selection problems, the need for an efficient method that can deal with qualitative judgments related to supplier selection still persists. In this paper, the applicability and usefulness of measuring attractiveness by a categorical-based evaluation technique (MACBETH) is demonstrated to act as a decision support tool while solving two real time supplier selection problems having qualitative performance measures. The ability of MACBETH method to quantify the qualitative performance measures helps to provide a numerical judgment scale for ranking the alternative suppliers and selecting the best one. The results obtained from MACBETH method exactly corroborate with those derived by the past researchers employing different mathematical approaches

Airport Benchmarking The Key Performance Area of Safety

The utility of an airport benchmarking process is widely recognised in a world where competition between airports is becoming a reality. Therefore, there is a need for a broad consensus to establish and construct reliable databases for measuring airport performance and consequently the development and the implementation of even more accurate performance management systems. A wide number of studies that focus on airport benchmarking - but mainly based on economic and productivity performance indicators are done and can be found in the literature. However, there is a lack of studies that focus on the airport performance in a holistic form, set in different areas for a truly global analysis. A Multi-Criteria Decision Analysis (MCDA) approach applied to Safety key performance area from PESA–AGB (Performance Efficiency Support Analysis – Airport Global Benchmarking) model. This model is based on MACBETH (Measuring Attractiveness by a Categorical Based Evaluation Technique) methodology is used to evaluate its impact on the overall performance of three airports; and under two distinct processes, peer and self-benchmarking - along eleven years. The Safety area performance analysis is done describing four case studies, where a selfbenchmarking analysis was conducted for three airports, A, B and C, with distinctive characteristics, each one representing the main Portuguese air infrastructures: Airport A is considered the largest one in terms of number of passenger and movements, related to Lisbon airport; Airport B mainly a Low-Cost Carrier (LCC) and Cargo one, resembling Oporto airport; and finally Airport C, an LCC oriented one with seasonality peaks along the year resembles the Faro airport. The last case study englobes the three airports in a peer-benchmarking analysis. As an important result, it was found that the Safety Performance Area has the greatest weight and therefore is the most important area in relation to airport performance, according to research done considering the opinions of experts. Through the performance analysis, it was found that airports A, B and C have medium to excellent performance in the security area, with a positive evolution in general since 2007 and with worse performances in 2004. The results evidence the importance of this type of evaluation to understand how airports deal with Safety issues and how this key performance area may impact in any benchmarking process, and on the overall evaluation of such complex transport infrastructure too.A utilidade do processo de benchmarking de aeroportos é amplamente reconhecida num mundo onde a competição entre aeroportos se esta a tornar uma realidade cada vez mais presente. Logo há uma necessidade por um consenso mais amplo para estabelecer e construir bases de dados confiáveis para medir a performance de aeroportos e consequentemente o desenvolvimento e implementação de melhores e mais precisos sistemas de gestão da mesma. Existem vários estudos focados na avaliação comparativa, mas sobretudo baseados em fatores económicos e de produtividade. No entanto há uma escassez de estudos focados na performance do aeroporto como um conjunto de áreas que devem ser abordadas numa verdadeira análise global. Por meio de análise multicritério de apoio à decisão (multiple-criteria decision analysis- MCDA), aplicada à área de segurança operacional e no modelo desenvolvido designado por PESA-AGB (Performance Efficiency Support Analysis- Airport Global Benchmarking) por sua vez baseado na metodologia MACBETH (Measuring Attractiveness by a Categorical Based Evaluation Technique) pretende-se avaliar a performance de 3 aeroportos fictícios (O aeroporto A com características semelhantes ao Aeroporto de Lisboa com grande número de movimentos e também considerado o principal aeroporto português, o Aeroporto B, semelhante ao aeroporto do Porto com características próprias de um aeroporto de companhias aéreas de baixo custo e transporte de carga e por último o aeroporto C com semelhanças ao aeroporto de Faro, marcado pela sazonalidade da sua procura) e em dois processos distintos, numa análise comparativa por grupos de aeroportos pertencentes ao mesmo grupo, e numa análise comparativa de cada aeroporto ao longo de um período de 11 anos. A performance da área de segurança é feita comparando classificações obtidas entre os aeroportos (peer-benchmarking) e através dos resultados obtidos por cada aeroporto nos últimos anos (self-benchmarking), demonstrando-se assim a utilidade e flexibilidade da ferramenta para os agentes com interesses ligados à infraestrutura aeroportuária. Como um importante resultado constatou-se que a Área de Desempenho de Segurança tem o maior peso e, portanto, é a área mais importante em relação ao desempenho do aeroporto, de acordo com a pesquisa feita levando em conta as opiniões dos especialistas. Os acidentes em pista como indicador de performance de segurança ocupam o lugar de maior importância e maior peso dentro dos indicadores de performance de segurança. Através da análise da performance constatou-se que os aeroportos A, B e C têm desempenho médio a excelente na área de segurança com uma evolução positiva de uma maneira geral a partir de 2007 e com piores performances no ano de 2004. Como outputs do modelo utilizado encontraram se medidas que permitem a análise de performance na área de Segurança. Com este tipo de avaliação deverá ser possível um melhor entendimento de como os aeroportos, infraestruturas de grande complexidade, lidam com as questões de segurança num processo de análise comparativa