Centralised resource allocation using Lexicographic Goal Programming. Application to the Spanish public university system

Identificador de proyecto: FEDER-UPO UPO-1380624This paper deals with Data Envelopment Analysis (DEA) in centralised settings in which the operating units belong to the same organisation. In such a scenario, a global system-wide perspective may be adopted as regards resource allocation and target setting. In this paper, a new Lexicographic Goal Programming (lexGP) approach is proposed using three priority levels: the aggregated input consumption and output production goals; the input and output goals of the individual operating units; and the technical efficiency of the computed targets. It is assumed that the goals for the overall organisation are established by the Central Decision-Maker (CDM) and that they are consistent with those of the individual operating units. The proposed approach has been applied to the Spanish public university system, comprising 47 institutions. Given the CDM preferences in terms of input and output aggregate goals and relative importance weights, specific technical efficient targets have been computed for each university. The results show that the proposed approach is more suitable than the non-centralised DEA approach and produces targets that are more effective than other centralised resource allocation approaches in the sense that they are much closer to both the aggregate goals of the CDM and the specific goals of each university.Universidad de Sevill

Pollution responsibility allocation in supply networks: A game-theoretic approach and a case study

This study introduces a cooperative game theory approach aimed at addressing the problem of allocating pollution responsibility across partners collaborating in supply networks. The proposed framework includes three different allocation rules through which companies can share pollution responsibility across complex supply networks. A case study in the context of a supply network for the manufacturing of construction materials is illustrated for demonstrating the real-world applicability of the approach

SUSTAINABLE EFFICIENCY OF FIRMS WHEN NEW SUSTAINABILITY TARGETS ARE INTRODUCED

There is a high potential for simultaneously increasing sustainability of the earth system and economic development by removing inefficiencies currently present both at the production input and output side. In this paper a static view on sustainability is employed, by introducing capacity constraints as the boundaries above (or below) which the system cannot maintain its stable state. Currently these capacity constraints are often not respected. In this paper it is shown how the efficiency improvement pathway of an industry and the firms within it can be calculated to come to a sustainable, profit maximizing state, given the existence of these capacity constraints.Efficiency analysis, sustainability, DEA, directional distance vectors, Resource /Energy Economics and Policy,

Reduction of non-performing loans in the banking industry: an application of data envelopment analysis

The increase in non-performing loans around the world has had quite a negative impact on many nations’ banking systems. To address these problems, many creative regulatory solutions and well-designed risk techniques have been utilized in the hope of reducing non-performing loans to an acceptable level. The purpose of this study is to apply a newly developed data envelopment analysis model to suggest the most efficient plan (called Plan 4) to reduce non-performing loans that can maximize the efficiency of the entire banking industry’s control over the bad debts. For comparison purpose, three other reduction plans are also represented. The four plans are presented using data from Taiwan’s banking industry. The empirical results show that among the plans presented, Plan 4 shows the most effective allocation of the industry-wide reduction target. The plan focuses on a finite number of banks, helping identify the key units to improve industry-wide efficiency. The findings implicitly suggest that the regulator should devise more incentive measures to encourage target banks to perform the non-performing loan reduction task. Our results also suggest that for the regulator, forcing banks to cut their non-performing loans by the same ratio will not help improve the relative efficiency of the industry

Evaluación y rediseño de la red pública educativa : un análisis centralizado

El análisis de eficiencia de los centros escolares constituye un tema de interés actual.El número de publicaciones en este campo de investigación se ha incrementado en lo últimos años, al intentar explicar que ciertas características del centro y del entorno influyen en los resultados de los alumnos. A la luz de la Teoría de la Producción y la Post-New Public Management, el objetivo del trabajo es la evaluación y rediseño, a través de técnicas frontera, de una muestra de centros de la red educativa pública de Catalunya. Los resultados obtenidos determinarán las acciones necesarias que permitan optimizar la red y redistribuir de forma óptima los recursos educativos. Por otro lado, aportarán información útil que ayude a la toma de decisiones por parte de las Administraciones Públicas y a la puesta en marcha de programas de mejora en los centros docentes

A Scenario-based Model for Resource Allocation with Price Information

In this paper, we consider the problem of allocating resources among Decision Making Units (DMUs). Regarding the concept of overall (cost) efficiency, we consider three different scenarios and formulate three Resource Allocation (RA) models correspondingly. In the first scenario, we assume that overall efficiency of each unit remains unchanged. The second scenario is related to the case where none of overall efficiency scores is deteriorated. We improve the overall efficiencies by a pre-determined percentage in the last scenario. We formulate Linear Programming problems to allocate resources in all scenarios. All three scenarios are illustrated through numerical and empirical examples

Allocating Tradable Emissions Permits Based on the Proportional Allocation Concept to Achieve a Low-Carbon Economy

A key issue within the emissions trading system is how tradable emissions permits (TEPs) are initially allocated among a set of entities. This study proposes an approach based on the proportional allocation concept to allocate TEPs among a set of decision making units (DMUs). We firstly deduce a TEP allocation set based on the rule that the TEPs allocated to DMUs should be proportional to their environmental contribution. We then obtain the allocation intervals of DMUs from the set, expressing the allocation as the convex combination between the upper and the lower bound. Finally, we define the satisfaction degree as the coefficient of the convex combination, and propose an algorithm based on the max-min fairness of satisfaction degrees to obtain a unique TEP allocation plan. To illustrate our approach, we provide the example of how TEPs are allocated among 30 provincial administrative regions in China. Our findings indicate that our allocation method can be helpful for achieving a saving in energy consumption and reducing emissions. In addition, from the data envelopment analysis perspective, the TEP allocation set can ensure that both each individual DMU and the organization as a whole become efficient under a common set of variable weights

A fair-biased allocation of investment between economic sectors using social accounting matrix multiplier analysis

Economists have exploited the social accounting matrix in linear economic models to analyze the effect of some variables such as government spending, investment, and export on other economic indicators including total output, employment, household income, and economic growth. In this paper, the influence of investment injection on some economic indicators is analyzed. In addition, to gather different indicators in a general view, these economic indicators are applied as inputs and outputs in a data envelopment analysis model. Overall, to get to the best possible economic conditions, a fair revenue allocation method is used based on a data envelopment analysis model to determine each economic sector’s quota of investment. Next, a kind of fair-biased allocation method improving the economic conditions in comparison to the prior model is proposed. Finally, the whole process for Iran’s social accounting matrix and subsequent results are presented

Ein DEA-basierter Ansatz zur Messung der Performance bei zentralisierten Managementstrukturen

Traditional performance measurement approaches are usually characterized by a number of different limitations. Among other things, these approaches require the subjective determination of weights to aggregate a set of indicators to an overall performance score. Furthermore, traditional approaches are usually not able to incorporate additional improvement potentials that can be received from a centralized management. A performance measurement framework which can overcome these limitations is called data envelopment analysis (DEA). Against this background, this thesis provides a thorough overview of how different degrees of centralization are modeled in the current DEA literature. The systematic literature review identified 135 different approaches that assume a centralized or partially centralized management structure. A concluding discussion of the respective DEA approaches showed two fundamental research gaps. In response to this, this thesis has two fundamental objectives: The first objective is to propose a DEA-based performance measurement approach for measuring performance changes over time. The second objective is to develop another DEA-based approach for comparing the performance of management groups. In contrast to so far developed DEA-models, the here proposed approaches explicitly incorporate the respective management structure. Both DEA approaches thus developed are based on the combination of the metafrontier concept and the Malmquist index. The first approach evaluates productivity changes of operating entities over time and, hence, may indicate potential sources for performance changes. Thereby, the proposed approach preserves the individual characteristics of each local group technology. The second DEA approach proposed here uses the Malmquist index for comparing the performance of management groups. This index accounts for the existence of a central decision maker who can, e.g., undertake resource reallocations to improve the overall performance of its managed group. The applicability and usefulness of both proposed approaches is empirically shown with real-world data from KONE Corporation.Traditionelle Performance Measurement Ansätze gehen mit einer Reihe von Herausforderungen einher. So erfordert die Aggregation unterschiedlicher Kennzahlen zu einem einzelnen Performancemaß die Verwendung von subjektiven Gewichtungen. Darüber hinaus lassen sich in traditionellen Ansätzen nur schwer etwaige Verbesserungspotentiale modellieren, die aus zentralisierten Managementstrukturen resultieren. Eine betriebswirtschaftliche Methode, welche die genannten Limitationen nicht aufweist, ist die Data Envelopment Analysis (DEA). Aufgrund dieser Vorteile wird in dieser Arbeit zunächst ein umfassender Literaturüberblick erarbeitet, wie unterschiedliche Managementstrukturen in einer DEA modelliert werden können. Mithilfe der Literaturrecherche wurden insgesamt 135 unterschiedliche Ansätze ermittelt, die entweder ein vollkommen zentralisiertes oder teilweise zentralisiertes Managementmodell unterstellen. Eine abschließende Diskussion der verschiedenen DEA-Ansätze zeigte allerdings eine Forschungslücke, woraus die beiden folgenden Forschungsziele für diese Arbeit abgeleitet wurden: Einerseits soll ein DEA-basierter Ansatz erarbeitet werden, der zur Messung von Effizienzveränderungen einzelner Produktiveinheiten über die Zeit geeignet ist. Andererseits soll eine DEA-basierte Methode entwickelt werden, welche bei Performancevergleichen zwischen Managementgruppen anwendbar ist. Im Gegensatz zu den bisher in der Literatur diskutierten Ansätzen sollten die entwickelten Methoden dabei die jeweils vorliegende Managementstruktur berücksichtigen. Die entwickelten DEA-Ansätze basieren auf der Kombination des Metafrontier-Konzepts mit dem Malmquist-Index. Der erste Ansatz erlaubt es, Performanceveränderungen von einzelnen Produktiveinheiten über mehrere Zeitperioden zu messen. Im Gegensatz zu konventionellen Metafrontier-basierten Malmquist-Indizes berücksichtigt der vorgeschlagene Ansatz die individuellen Eigenschaften der lokalen Produktionstechnologien. Der zweite vorgeschlagene DEA-Ansatz nutzt den Malmquist-Index für den Vergleich der Performance von Managementgruppen. Der Index berücksichtigt dabei explizit, dass eine zentrale Entscheidungsinstanz existiert, welche Ressourcenumverteilungen durchführen kann. Beide Ansätze werden anhand eines Datensatzes des Unternehmens KONE illustriert