Improvement Of Discrimination Power And Weight Dispersion In Multi-Criteria Data Envelopment Analysis

Lack of discrimination power and poor weight dispersion remain major issues in Data Envelopment Analysis (DEA). Since the initial multiple criteria DEA (MCDEA) model developed in the late 1990s, only goal programming approaches; that is, the GPDEA-CCR and GPDEA-BCC were introduced for solving the said problems in a multi-objective framework. Kekurangan keupayaan mendiskriminasi dan kelemahan pengagihan pemberat kekal sebagai isu utama dalam Analisis Penyampulan Data (DEA). Semenjak model DEA berbilang kriteria (MCDEA) pertama yang dibentuk pada akhir tahun 1990an, hanya pendekatan pengaturcaraangol; yakni, GPDEA-CCR dan GPDEA-BCC telah diperkenalkan bagi menyelesaikan masalah berkenaan dalam konteks berbilang kriteria

A bi-objective weighted model for improving the discrimination power in MCDEA

This is the author accepted manuscript. The final version is available from Elsevier via the DOI in this recordLack of discrimination power and poor weight dispersion remain major issues in Data Envelopment Analysis (DEA). Since the initial multiple criteria DEA (MCDEA) model developed in the late 1990s, only goal programming approaches; that is, the GPDEA-CCR and GPDEA-BCC were introduced for solving the said problems in a multi-objective framework. We found GPDEA models to be invalid and demonstrate that our proposed bi-objective multiple criteria DEA (BiO-MCDEA) outperforms the GPDEA models in the aspects of discrimination power and weight dispersion, as well as requiring less computational codes. An application of energy dependency among 25 European Union member countries is further used to describe the efficacy of our approach. © 2013 Elsevier B.V. All rights reserved.US

An integrated performance measurement framework for restaurant chains: A case study in Istanbul

Companies that continue to operate in a competitive market strive the most efficient use of their resources in order to remain competitive. Nowadays, with increasing customer feedback, properly analyzing customer needs and requests and producing services in accordance with expectations have become increasingly important due to the large number of companies competing in the same market, and this is especially important to be at the forefront of competitors in the food services industry. There are risks and uncertainties owing to the continuously changing demand for food service enterprises, the difficulty to regulate interest and comparable charges, the competitive environment, and currency rate hikes. In light of all of these circumstances, restaurants require a versatile tool to effectively measure and analyze their performance. Therefore, this study combines Principal Component Analysis (PCA) and Categorical Data Envelopment Analysis (CAT-DEA) to analyze the performance of 15 dealers in Istanbul, divided into three categories: steakhouse, kebab, and meatball-doner. The results demonstrate that each category has just one efficient restaurant, for a total of three efficient restaurants out of fifteen. In addition to the suggested CAT-DEA-based framework, three research hypotheses are constructed and analyzed to investigate the link between restaurant performance and various environmental factors (or relevant indicators) in the food service industry.Rekabetçi bir piyasada faaliyet göstermeye devam eden şirketler, rekabetçi kalabilmek için kaynaklarını en verimli şekilde kullanmaya çalışırlar. Artan müşteri geri bildirimleri ile birlikte, aynı pazarda rekabet eden çok sayıda firma nedeniyle, müşteri ihtiyaç ve isteklerini doğru analiz etmek ve beklentilere uygun hizmet üretmek giderek daha önemli hale geldi ve bu durum özellikle gıda hizmetleri endüstrisinde rekabette ön planda olmak için önemlidir. Yiyecek hizmeti işletmelerine yönelik sürekli değişen talep, faiz ve karşılaştırılabilir ücretlerin düzenlenmesindeki zorluk, rekabet ortamı ve kur artışları nedeniyle bu sektörde riskler ve belirsizlikler bulunmaktadır. Tüm bu koşullar ışığında restoranlar, performanslarını etkin bir şekilde ölçmek ve analiz etmek için çok yönlü bir araca ihtiyaç duyarlar. Bu nedenle, bu çalışma, İstanbul'da et lokantası, kebap ve köfte-döner olmak üzere üç kategoriye ayrılmış 15 bayinin performansını analiz etmek için Temel Bileşenler Analizi (PCA) ve Kategorik Veri Zarflama Analizini (CAT-DEA) birleştirmektedir. Sonuçlar, her bir kategorinin yalnızca bir verimli restorana sahip olduğunu ve on beş bayiden toplamda üç bayinin verimli olduğunu göstermektedir. Önerilen CAT-DEA tabanlı yaklaşıma ek olarak, yemek hizmeti endüstrisinde restoran performansı ile çeşitli çevresel faktörler (veya ilgili göstergeler) arasındaki bağlantıyı araştırmak için üç araştırma hipotezi oluşturulmuş ve analiz edilmiştir

Analysis of Heuristic Validity, Efficiency and Applicability of the Profile Distance Method for Implementation in Decision Support Systems

This article seeks to enhance acceptance of the profile distance method (PDM) in decision support systems. The PDM is a multiple attributive based decision making as well as a multiple method approach to support complex decision making and uses a heuristic to avoid computationally complex global optimization. We elaborate on the usability of the method and question the heuristic used. We present a bisection algorithm, which efficiently supports the discovery of transition profiles needed in a user-friendly and practical application of the method. Additionally, we provide empirical evidence showing that the proposed heuristic is efficient and delivers results within 5% of the global optimizer for a wide range of data sets

Visual management of performance with PROMETHEE productivity analysis

Multi-criteria decision analysis has been used to solve many problems. Here we describe an adaptation of PROMETHEE for measuring productivity. The results of PROMETHEE productivity analysis are displayed graphically, permitting the user to distinguish easily between four types of action: efficient, effective, frugal and inefficient actions. The productivity graph can be used for visual management and provides a simple, effective means of improving information communication within an organisation. It enhances transparency and promotes continuous improvement. Steps can be taken to improve ineffective actions using peer(s) on the frontier as example. To illustrate the use of the method we analysed the productivity of British universities. Only two old and two of the most recent universities were found to be on the frontier. Almost all of the most recent universities were classed as frugal and post-92 universities tended to be inefficient. Large old universities were generally classed as effective.SCOPUS: ar.jinfo:eu-repo/semantics/publishe

Defuzzification of groups of fuzzy numbers using data envelopment analysis

Defuzzification is a critical process in the implementation of fuzzy systems that converts fuzzy numbers to crisp representations. Few researchers have focused on cases where the crisp outputs must satisfy a set of relationships dictated in the original crisp data. This phenomenon indicates that these crisp outputs are mathematically dependent on one another. Furthermore, these fuzzy numbers may exist as a group of fuzzy numbers. Therefore, the primary aim of this thesis is to develop a method to defuzzify groups of fuzzy numbers based on Charnes, Cooper, and Rhodes (CCR)-Data Envelopment Analysis (DEA) model by modifying the Center of Gravity (COG) method as the objective function. The constraints represent the relationships and some additional restrictions on the allowable crisp outputs with their dependency property. This leads to the creation of crisp values with preserved relationships and/or properties as in the original crisp data. Comparing with Linear Programming (LP) based model, the proposed CCR-DEA model is more efficient, and also able to defuzzify non-linear fuzzy numbers with accurate solutions. Moreover, the crisp outputs obtained by the proposed method are the nearest points to the fuzzy numbers in case of crisp independent outputs, and best nearest points to the fuzzy numbers in case of dependent crisp outputs. As a conclusion, the proposed CCR-DEA defuzzification method can create either dependent crisp outputs with preserved relationship or independent crisp outputs without any relationship. Besides, the proposed method is a general method to defuzzify groups or individuals fuzzy numbers under the assumption of convexity with linear and non-linear membership functions or relationships

Smart Growth Principles Combined with Fuzzy AHP and DEA Approach to the Transit-oriented Development (TOD) Planning in Urban Transportation Systems

The research for a land use and transportation planning has always been an important study area among the urban planning field. Since the 20th century, automobiles had become the main media as the transportation vehicle. However, the automobile-oriented development (AOD) also caused the sever urban sprawl problem during the past years. In order to reduce the problems of urban sprawl, the Smart Growth concepts have been proposed and applied to transportation planning process. In recent years, with the up to date sustainable development concept, the transit-oriented development (TOD) model has become one of the novel transport planning strategies utilized to improve the urban environment by means of Smart Growth principles. This study tries to integrate smart growth principles into the urban transportation planning development strategies and utilize objective scientific method to the empirical study. This study will include the following sections. First of all, we try to study and classify the category of smart growth principles based on literature review. Followed by applying fuzzy Delphi technique (FDT) to obtain individual expert’s opinions and to screen the most important criteria of proposed principles in our research. And then the empirical study of Taipei Metro Transit System will be demonstrated to show the application of our proposed methodology. Finally, the utilization of data envelopment analysis (DEA) model combined with assurance region analysis will be applied to select the most suitable MRT stations as the suggested strategies for public sectors. Keywords: Smart Growth, Transit-oriented Development (TOD), Fuzzy Delphi Technique (FDT), Data Envelopment Analysis (DEA

A generalized fuzzy Multiple-Layer NDEA: An application to performance-based budgeting

Network data envelopment analysis (NDEA) is capable of considering operations and interdependence of a system’s component processes to measure efficiencies. There are numerous performance evaluation applications in which some indicators have hierarchical structures with a considerable number of sub-indicators. This problem of ignoring the hierarchical structure of indicators weakens the discrimination power of NDEA models and may result in inaccurate efficiency scores. In this paper we propose a generalized fuzzy Multiple-Layer NDEA (GFML-NDEA) model and GFML-NDEA-based composite indicators (GFML-NDEA-CI) to incorporate the hierarchical structures of indicators in the ambit of the particular two-stage NDEA models. To demonstrate the usefulness of the GFMLNDEA-CI model proposed, its application was tested by evaluating the efficiency of the performance-based budgeting (PBB) system in 14 governmental agencies in Iran. The comparative analysis results obtained from the GFML-NDEA-CI (multi-layer) model with those from the single-layer fuzzy NDEA-CI model indicate that the number of efficient decision-making units (DMUs) in the one-layer model is eight, whereas it is solely one DMU in the multi-layer model. The discrimination power of the multi-layer model proposed is significantly increased by observing that standard deviation of efficiency scores are increased by 41%, 61%, and 84% for possibility levels 0, 0.5, and 1, respectively. This is obtained while reducing information entropy, thus suggesting that the proposed model yields more reliable scores

Monitoring the performance of petrochemical organizations in Saudi Arabia using data envelopment analysis

The petrochemical industry plays a crucial role in the economy of the Kingdom of Saudi Arabia. Therefore, the effectiveness and efficiency of this industry is of high importance. Data envelopment analysis (DEA) is found to be more acceptable in measuring the effectiveness of various industries when used in conjunction with non-parametric methods such as multiple regression, analytical hierarchy process (AHP), multidimensional scaling (MDS), and other multiple criteria decision making (MCDM) approaches. In this study, ten petrochemical companies in the Kingdom of Saudi Arabia are evaluated using Banker, Charnes and Cooper (BCC)/Charnes, Cooper, and Rhodes (CCR) models of DEA to compute the technical and super-efficiencies for ranking according to their relative performances. Data were collected from the Saudi Stock Exchange on key financial performance measures, five of which were chosen as inputs and five as outputs. Five DEA models were developed using different input–output combinations. The efficiency plots obtained from DEA were compared with the Euclidean distance scatter plot obtained from MDS. The dimensionality of MDS plots was derived from the DEA output. It was found that the two-dimensional positioning of the companies was congruent in both plots, thus validating the DEA results