Robust optimization in data envelopment analysis: extended theory and applications.

Performance evaluation of decision-making units (DMUs) via the data envelopment analysis (DEA) is confronted with multi-conflicting objectives, complex alternatives and significant uncertainties. Visualizing the risk of uncertainties in the data used in the evaluation process is crucial to understanding the need for cutting edge solution techniques to organizational decisions. A greater management concern is to have techniques and practical models that can evaluate their operations and make decisions that are not only optimal but also consistent with the changing environment. Motivated by the myriad need to mitigate the risk of uncertainties in performance evaluations, this thesis focuses on finding robust and flexible evaluation strategies to the ranking and classification of DMUs. It studies performance measurement with the DEA tool and addresses the uncertainties in data via the robust optimization technique. The thesis develops new models in robust data envelopment analysis with applications to management science, which are pursued in four research thrust. In the first thrust, a robust counterpart optimization with nonnegative decision variables is proposed which is then used to formulate new budget of uncertainty-based robust DEA models. The proposed model is shown to save the computational cost for robust optimization solutions to operations research problems involving only positive decision variables. The second research thrust studies the duality relations of models within the worst-case and best-case approach in the input \u2013 output orientation framework. A key contribution is the design of a classification scheme that utilizes the conservativeness and the risk preference of the decision maker. In the third thrust, a new robust DEA model based on ellipsoidal uncertainty sets is proposed which is further extended to the additive model and compared with imprecise additive models. The final thrust study the modelling techniques including goal programming, robust optimization and data envelopment to a transportation problem where the concern is on the efficiency of the transport network, uncertainties in the demand and supply of goods and a compromising solution to multiple conflicting objectives of the decision maker. Several numerical examples and real-world applications are made to explore and demonstrate the applicability of the developed models and their essence to management decisions. Applications such as the robust evaluation of banking efficiency in Europe and in particular Germany and Italy are made. Considering the proposed models and their applications, efficiency analysis explored in this research will correspond to the practical framework of industrial and organizational decision making and will further advance the course of robust management decisions

Robust optimization in data envelopment analysis: extended theory and applications.

Performance evaluation of decision-making units (DMUs) via the data envelopment analysis (DEA) is confronted with multi-conflicting objectives, complex alternatives and significant uncertainties. Visualizing the risk of uncertainties in the data used in the evaluation process is crucial to understanding the need for cutting edge solution techniques to organizational decisions. A greater management concern is to have techniques and practical models that can evaluate their operations and make decisions that are not only optimal but also consistent with the changing environment. Motivated by the myriad need to mitigate the risk of uncertainties in performance evaluations, this thesis focuses on finding robust and flexible evaluation strategies to the ranking and classification of DMUs. It studies performance measurement with the DEA tool and addresses the uncertainties in data via the robust optimization technique. The thesis develops new models in robust data envelopment analysis with applications to management science, which are pursued in four research thrust. In the first thrust, a robust counterpart optimization with nonnegative decision variables is proposed which is then used to formulate new budget of uncertainty-based robust DEA models. The proposed model is shown to save the computational cost for robust optimization solutions to operations research problems involving only positive decision variables. The second research thrust studies the duality relations of models within the worst-case and best-case approach in the input – output orientation framework. A key contribution is the design of a classification scheme that utilizes the conservativeness and the risk preference of the decision maker. In the third thrust, a new robust DEA model based on ellipsoidal uncertainty sets is proposed which is further extended to the additive model and compared with imprecise additive models. The final thrust study the modelling techniques including goal programming, robust optimization and data envelopment to a transportation problem where the concern is on the efficiency of the transport network, uncertainties in the demand and supply of goods and a compromising solution to multiple conflicting objectives of the decision maker. Several numerical examples and real-world applications are made to explore and demonstrate the applicability of the developed models and their essence to management decisions. Applications such as the robust evaluation of banking efficiency in Europe and in particular Germany and Italy are made. Considering the proposed models and their applications, efficiency analysis explored in this research will correspond to the practical framework of industrial and organizational decision making and will further advance the course of robust management decisions

Measurement of Returns-to-Scale using Interval Data Envelopment Analysis Models

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI linkThe economic concept of Returns-to-Scale (RTS) has been intensively studied in the context of Data Envelopment Analysis (DEA). The conventional DEA models that are used for RTS classification require well-defined and accurate data whereas in reality observations gathered from production systems may be characterized by intervals. For instance, the heat losses of the combined production of heat and power (CHP) systems may be within a certain range, hinging on a wide variety of factors such as external temperature and real-time energy demand. Enriching the current literature independently tackling the two problems; interval data and RTS estimation; we develop an overarching evaluation process for estimating RTS of Decision Making Units (DMUs) in Imprecise DEA (IDEA) where the input and output data lie within bounded intervals. In the presence of interval data, we introduce six types of RTS involving increasing, decreasing, constant, non-increasing, non-decreasing and variable RTS. The situation for non-increasing (non-decreasing) RTS is then divided into two partitions; constant or decreasing (constant or increasing) RTS using sensitivity analysis. Additionally, the situation for variable RTS is split into three partitions consisting of constant, decreasing and increasing RTS using sensitivity analysis. Besides, we present the stability region of an observation while preserving its current RTS classification using the optimal values of a set of proposed DEA-based models. The applicability and efficacy of the developed approach is finally studied through two numerical examples and a case study

New Fundamental Technologies in Data Mining

The progress of data mining technology and large public popularity establish a need for a comprehensive text on the subject. The series of books entitled by "Data Mining" address the need by presenting in-depth description of novel mining algorithms and many useful applications. In addition to understanding each section deeply, the two books present useful hints and strategies to solving problems in the following chapters. The contributing authors have highlighted many future research directions that will foster multi-disciplinary collaborations and hence will lead to significant development in the field of data mining

Operational Research: Methods and Applications

Throughout its history, Operational Research has evolved to include a variety of methods, models and algorithms that have been applied to a diverse and wide range of contexts. This encyclopedic article consists of two main sections: methods and applications. The first aims to summarise the up-to-date knowledge and provide an overview of the state-of-the-art methods and key developments in the various subdomains of the field. The second offers a wide-ranging list of areas where Operational Research has been applied. The article is meant to be read in a nonlinear fashion. It should be used as a point of reference or first-port-of-call for a diverse pool of readers: academics, researchers, students, and practitioners. The entries within the methods and applications sections are presented in alphabetical order. The authors dedicate this paper to the 2023 Turkey/Syria earthquake victims. We sincerely hope that advances in OR will play a role towards minimising the pain and suffering caused by this and future catastrophes

Multispace & Multistructure. Neutrosophic Transdisciplinarity (100 Collected Papers of Sciences), Vol. IV

The fourth volume, in my book series of “Collected Papers”, includes 100 published and unpublished articles, notes, (preliminary) drafts containing just ideas to be further investigated, scientific souvenirs, scientific blogs, project proposals, small experiments, solved and unsolved problems and conjectures, updated or alternative versions of previous papers, short or long humanistic essays, letters to the editors - all collected in the previous three decades (1980-2010) – but most of them are from the last decade (2000-2010), some of them being lost and found, yet others are extended, diversified, improved versions. This is an eclectic tome of 800 pages with papers in various fields of sciences, alphabetically listed, such as: astronomy, biology, calculus, chemistry, computer programming codification, economics and business and politics, education and administration, game theory, geometry, graph theory, information fusion, neutrosophic logic and set, non-Euclidean geometry, number theory, paradoxes, philosophy of science, psychology, quantum physics, scientific research methods, and statistics. It was my preoccupation and collaboration as author, co-author, translator, or cotranslator, and editor with many scientists from around the world for long time. Many topics from this book are incipient and need to be expanded in future explorations

Natural Environment Management and Applied Systems Analysis

This volume contains papers from the NEMASA Konan-IIASA Joint Workshop on Natural Environment Management and Applied Systems Analysis, which took place at IIASA September 6-8, 2000. The workshop was an activity of the research project "Modeling by Computational Intelligence and its Application to Natural Environment Management." The project is being supported by the Hirao Taro Foundation of the Konan University Association for Academic Research, Kobe, Japan. The management of the natural environment -- in particular, the use of advanced agricultural practices -- poses a major challenge to modern society, but perhaps applied systems analysis can help. The workshop set was about to: present new concepts and methodologies for managing the environment, and offer an open forum for the exchange of ideas among research disciplines, especially between agro-environmental and applied systems analysis research and between researchers and practitioners. The paper deal with a range of topics. The editors have arranged them into the following categories: (1) modeling methodologies, (2) data analysis, (3) land use, (4) water management, and (5) applications

Water utility efficiency and stated choice responses: status quo effects, effects of presentation format and response time

Water regulators and policymakers around the world are increasingly influencing water systems towards efficiency and sustainable consumption. In pursuit of these, most regulators mainly use traditional economic-analysis methods to benchmark water utilities and elicit water-service preferences. There have been discussions of several other techniques that extend the commonly used traditional economic analysis tools in the literature. Regardless of these discussions, the practical application of new economic analysis tools in the water sector remains relatively low. This study intends to extend the existing literature by providing more robust methods that could be useful to water regulators. The study asks four research questions to shed light on whether more robust methods are the way forward in water regulation. More precisely, the study investigates the consistency of efficiency scores obtained from the data envelopment analysis (DEA), stochastic frontier analysis (SFA) and stochastic non-parametric envelopment of data (StoNED) techniques on a sample of South African water utilities. Additionally, the study examines the impact of status quo bias, presentation format and response time on results from discrete choice experiments conducted using a case of the South African water sector. The study reports four main findings. First, we find that the StoNED method (based on the methods of moments estimator) outperformed both SFA and DEA. However, SFA outperformed StoNED, when the latter was based on the pseudolikelihood estimator. Second, we find that including a partially relevant status quo reduced status quo bias but did not significantly affect empirical estimates. Major differences are noted in the marginal willingness to pay (MWTP) estimates reported for one of the sub-samples. Third, we find that presenting attributes and levels using the visuals format generated more statistically significant coefficients than presenting them as text or text-and-visuals. Generally, we find that the presentation format significantly affects choice. Finally, we find that removing fast or slow responses from the sample did not significantly affect both utility function and MWTP results. Based on these findings, the study makes four main recommendations. Firstly, the study argues that StoNED (method of moments estimator) and SFA are more appropriate for estimating efficiency in heterogenous water sectors. The study makes recommendations for future studies that seek to do a methodological cross-checking of the three efficiency analysis techniques in the water sector. Secondly, the study argues that a text-and-visuals experiment improves choice task clarity and yields more robust estimates. Thus, more research on the effects of presentation formats is required in environmental economics so that guidelines on developing valid presentation formats for choice tasks can be established. Finally, the study argues against the exclusion of fast and slow responses from the dataset; and recommends approaches for future studies that investigate the impact of response time on choice