16 research outputs found
Using data envelopment analysis for supplier evaluation with environmental considerations
With the proliferation of outsourcing in global market place, supplier selection has become a key strategic consideration in forming a competitive supply chain. Supplier selection has been recognized as a multi-criteria decision making problem in which suppliers are evaluated according to multiple criteria such as price, quality, delivery and service simultaneously. Facing with excessive pressures from government and customers, increasing number of companies are beginning to consider environmental issues in the procurement and supplier selection process to practice the sustainable development. It is therefore necessary to measure a supplier’s environmental performance. This paper aims to find out what kind of environmental criteria can be applied to assess suppliers overall performances. The multicriteria decision making approach data envelopment analysis (DEA) is applied to help companies to evaluate suppliers’ various environmental performance and other capabilities simultaneously. © 2013 IEEE.published_or_final_versio
A Ranking Method Based on Common Weights and Benchmark Point
The highest efficiency score 1 (100% efficiency) is regarded as a common benchmark for Decision Making Units (DMUs). This brings about the existence of more than one DMU with the highest score. Such a case normally occurs in all Data Envelopment Analysis (DEA) models and also in all the Common Set of Weights (CSWs) methods and it may lead to the lack of thorough ranking of DMUs. And ideal DMU based on its specific structure is a unit that no unit would do better than. Therefore, it can be utilized as a benchmark for other units. We are going to take advantage of this feature to introduce a linear programming problem that will produce CSWs. The proposed method assures that the efficiency of all the units is less than that of the benchmark unit. As a result, it provides a comprehensive ranking of DMUs. Moreover, the proposed method is also noteworthy regarding computation. A numerical example is suggested to clarify and explain the proposed method and compare it to two other CSWs methods. Finally, 33 universities in Iran were ranked and compared using the proposed method
PERFORMANCE EFFICIENCY OF SELECTED PHILIPPINES FOOD AND BEVERAGE MANUFACTURING COMPANIES
The purpose of this paper is to evaluate and measure the efficiency performance of selected Philippines food and beverage manufacturing companies covering from 2005 to 2007. Two input and output variables of five companies listed in the Philippine Stock Exchange were examined using Data Envelopment Analysis (DEA) model to evaluate the companies’ performance. The results generally indicate that too much capital use and high operating expenses in conjunction with low revenue or sales characterize inefficient operations. The result suggests that the companies with the presence of slack must evaluate especially the idle capital, inefficient use of operating expenses and concentrate on increasing the total sales. DEA approach is able to determine the benchmarking company among other Philippines food and beverage manufacturing companies
FenntarthatĂłsági szempontok beĂ©pĂtĂ©se a beszállĂtĂł Ă©rtĂ©kelĂ©sĂ©be a DEA/CI összetett indikátorok mĂłdszere alkalmazásával (Integrating sustainability criteria in supplier evaluation with application of the method of of DEA/CI complex indicators)
A környezeti hatások rendszerint túlmutatnak egy vállalat határain, éppen ezért az ellátási lánc kontextusban
a környezeti szempontok Ă©rvĂ©nyesĂtĂ©se során fontos szerep jut a beszerzĂ©si döntĂ©seknek is. Számos olyan pĂ©ldát
lehetne emlĂteni, amikor egy adott szempont szerint egy alternatĂva környezetileg elĹ‘nyös, de az ellátási
lánc egészét nézve már környezetterhelő. A környezeti hatások ellátási lánc szinten való mérése azonban komoly
kihĂvásokat jelent. Ezzel jelentĹ‘s kutatásokat Ă©s fejlesztĂ©seket inspirált a tĂ©ma. Az egyik olyan terĂĽlet,
amelyben komoly kutatási eredmĂ©nyek szĂĽlettek, az a környezeti szempontok beszállĂtĂłi Ă©rtĂ©kelĂ©sbe valĂł beĂ©pĂtĂ©se. A kutatások ezen irányához csatlakozva a szerzĹ‘k tanulmányunkban azt keresik, hogyan lehet meghatározni
az egyik legáltalánosabban használt szállĂtóértĂ©kelĂ©si mĂłdszerben, a sĂşlyozott pontrendszerben egy
adott szemponthoz azt a súlyt, amely mellett az adott szempont már döntésbefolyásoló tényezővé válik. Ehhez
a DEA (Data Envelopment Analysis) összetett indikátorok (Composite Indicators, CI) módszerét alkalmazzák.
A szempontok közös sĂşlyának fontossága megállapĂtásához a lineáris programozás elmĂ©letĂ©t használják. _____ Management decisions often have an environmental effect not just within the company, but outside as well,
this is why supply chain context is highlighted in literature. Measuring environmental issues of supply decisions raise a lot of problems from methodological and
practical point of view. This inspires a rapidly growing
literature as a lot of studies were published focusing on
how to incorporate environmental issues into supplier
evaluation. This paper contributes to this stream of research as it develops a method to help weight selection.
In the authors’ paper the method of Data Envelope
Analysis (DEA) is used to study the extension of traditional
supplier selection methods with environmental
factors. The selection of the weight system can control
the result of the selection process
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
Supplier Evaluation with Environmental Aspects and Common DEA Weights
Supplier selection is an important business decision. Beside traditional management criteria the environmental aspects are getting often recognition. In this paper the method of Data Envelopment Analysis (DEA) is used to study the extension of traditional supplier selection methods with environmental factors. The focus will be on the weight selection process which can control the selection. In this method we divide the criteria in two manners: the traditional and environmental (green) factors. Then with the help of DEA we are searching a weight system with which the environmental criteria can influence the decision with a representation of the green factors. To choose the mentioned weight system, we apply DEA (Data Envelopment Analysis) with common weights analysis (CWA) method. In this case of DEA/CWA the common weights are calculated with a linear programming problem
Analysis of efficiency and profitability of franchise services
The present study analyses the relative efficiency of franchise services and
characterises the best companies, confirming the relationship between efficiency and
profit. These companies are from the trade and other services sector , the main
group of service-providing companies in the Spanish economy. The methodology
calls for first comparing the relative efficiency of franchisers and ownership
enterprises. Second, the focus turns to the most efficient franchise services, using a
super-efficiency model to rank them. The paper then goes on to cover the analysis of
the main characteristics of the best franchise enterprises, the number of own
establishments in a franchise business and the profitability of the company. This
paper presents arguments as to why companies from the trade and other services
sector are included. The main conclusion is that, whilst the number of
establishments is irrelevant in achieving greater efficiency, many of the most
efficient enterprises have high returns.GarcĂa Martin, CJ.; Medal Bartual, A.; Peris-Ortiz, M. (2014). Analysis of efficiency and profitability of franchise services. Service Industries Journal. 34(9):796-810. doi:10.1080/02642069.2014.905921S79681034
Using CSW weight’s in UTASTAR method
Several researchers have considered similarities between Multi-Criteria Decision Making (MCDM) and Data Envelopment Analysis (DEA), as tools for solving decision making problems. As the preferences of decision- maker (DM) on alternatives are not considered in classical DEA, some researchers have tried to consider it in DEA. The UTA-STAR method is one of the techniques widely used in Multi Criteria Decision Analysis. In this technique, the preferences of decision maker on alternatives are considered and UTA-STAR tries to compute the most suitable weights for criteria and alternatives to obtain a utility function having a minimum deviation from the preferences. The goal of this paper is interpreting decision maker’s preferences in UTA-STAR method, in a new manner, using the common set of weights (CSW) in DEA
Ranking Efficient DMUs Using the Variation Coefficient of Weights in DEA
Abstract One of the difficulties of Data Envelopment Analysis(DEA) is the problem of de_ciency discrimination among efficient Decision Making Units (DMUs) and hence, yielding large number of DMUs as efficient ones. The main purpose of this paper is to overcome this inability. One of the methods for ranking efficient DMUs is minimizing the Coefficient of Variation (CV) for inputs-outputs weights. In this paper, it is introduced a nonlinear model for ranking efficient DMUs based on the minimizing the mean absolute deviation of weights and then we convert the nonlinear model proposed into a linear programming form
DEA with common set of weights based on a multi objective fractional programming problem
Data envelopment analysis operates as a tool to appraise the relative efficiency of a set of homogenous decision making units. DEA allows each DMU to take its optimal weight in comparison to other DMUs while a similar condition is considered for other units. This feature threats the comparability of different units because different weighting schemes are used for different DMUs. In this paper, a model is presented to determine a common set of weights to calculate DMUs efficiency. This model is developed based on a multi objective fractional linear programming model that considers the original DEA's results as ideal solution and seeks a set of common weights to evaluate DMUs and increases the model's discrimination power. A numerical example is solved and the proposed method's results are compared to some previous methods. This Comparison has shown the proposed method's advantages in ranking DMUs