A Computational Method for Solving DEA Problems with Infinitely Many DMUs

Semi-infinite programs as related to DEA with infinitely many DMUs will be solved by bisections within the framework of LPs. No gradient Information Is needed, contrary to the usual Newton-Raphson type methods for solving semi-Infinite programs.The rate of convergence is linear. The method has a stable convergency feature derived from the bisection rule.Reprinted from Research Report CCS 561, Center for Cybernetic Studies, The University of Texas, at Austin

Maximin and maximal solutions for linear programming problems with possibilistic uncertainty

We consider linear programming problems with uncertain constraint coefficients described by intervals or, more generally, possi-bility distributions. The uncertainty is given a behavioral interpretation using coherent lower previsions from the theory of imprecise probabilities. We give a meaning to the linear programming problems by reformulating them as decision problems under such imprecise-probabilistic uncer-tainty. We provide expressions for and illustrations of the maximin and maximal solutions of these decision problems and present computational approaches for dealing with them

Evaluating Greek equity funds using data envelopment analysis

This study assesses the relative performance of Greek equity funds employing a non-parametric method, specifically Data Envelopment Analysis (DEA). Using an original sample of cost and operational attributes we explore the e¤ect of each variable on funds' operational efficiency for an oligopolistic and bank-dominated fund industry. Our results have significant implications for the investors' fund selection process since we are able to identify potential sources of inefficiencies for the funds. The most striking result is that the percentage of assets under management affects performance negatively, a conclusion which may be related to the structure of the domestic stock market. Furthermore, we provide evidence against the notion of funds' mean-variance efficiency

Stabilizing distinguishable qubits against spontaneous decay by detected-jump correcting quantum codes

A new class of error-correcting quantum codes is introduced capable of stabilizing qubits against spontaneous decay arising from couplings to statistically independent reservoirs. These quantum codes are based on the idea of using an embedded quantum code and exploiting the classical information available about which qubit has been affected by the environment. They are immediately relevant for quantum computation and information processing using arrays of trapped ions or nuclear spins. Interesting relations between these quantum codes and basic notions of design theory are established

Aspiration Level Approach to Interactive Multi-objective Programming and its Applications

Several kinds of techniques for multiple criteria decision making have been developed for the last few decades. Above all, the aspiration level approach to multi-objective programming problems is widely recognized to be effective in many practical fields. As a variant of the aspiration level approach, the author developed the satisficing tradeoff method. In addition, he has been applying the method to several kinds of practical problems for these ten years. Some of them were already performed in real life. Typical examples such as feed formulation for live stock, erection management of a cable stayed bridge and bond portfolio selection will be included in this paper

Formative evaluation of electricity distribution utilities using data envelopment analysis

The use of Data Envelopment Analysis (DEA) in the electricity distribution sector has been prolific in the number of papers published in research journals. However, while numerous studies have been documented, they have mostly been summative. Their aim has been predominantly descriptive and classificatory. This paper argues that evaluations of a formative nature are more effective than summative studies in promoting a better understanding of the structures and processes of electricity distribution utilities and, consequently, are more appropriate to contribute to performance improvement. To illustrate the use of DEA for formative evaluation, and highlight some of the difficulties of using DEA in practice, this paper compares the cost-efficiency of the Portuguese electricity distribution companies from 2002 to 2006. A dynamic analysis using Malmquist Indices is also conducted in order to evaluate the changes in productivity over this period. Our analysis shows that the application of DEA for formative purposes meets some difficulties. In particular it shows that while the modelling of productivity/efficiency scores using DEA is relatively straightforward, it is comparatively more difficult to develop models that are economically valid and that produce results with face validity. On the basis of the insights derived from this analysis, the paper provides some recommendations regarding the successful application of DEA for performance improvement

Bounds on the Complexity of Halfspace Intersections when the Bounded Faces have Small Dimension

We study the combinatorial complexity of D-dimensional polyhedra defined as the intersection of n halfspaces, with the property that the highest dimension of any bounded face is much smaller than D. We show that, if d is the maximum dimension of a bounded face, then the number of vertices of the polyhedron is O(n^d) and the total number of bounded faces of the polyhedron is O(n^d^2). For inputs in general position the number of bounded faces is O(n^d). For any fixed d, we show how to compute the set of all vertices, how to determine the maximum dimension of a bounded face of the polyhedron, and how to compute the set of bounded faces in polynomial time, by solving a polynomial number of linear programs

Collaborative dynamic decision making: a case study from B2B supplier selection

The problem of supplier selection can be easily modeled as a multiple-criteria decision making (MCDM) problem: businesses express their preferences with respect to suppliers, which can then be ranked and selected. This approach has two major pitfalls: first, it does not consider a dynamic scenario, in which suppliers and their ratings are constantly changing; second, it only addressed the problem from the point of view of a single business, and cannot be easily applied when considering more than one business. To overcome these problems, we introduce a method for supplier selection that builds upon the dynamic MCDM framework of Campanella and Ribeiro [1] and, by means of a linear programming model, can be used in the case of multiple collaborating businesses plan- ning their next batch of orders together.Fundação para a Ciência e a Tecnologia, Portugal, under contract CONT DOUT/49/UNINOVA/0/5902/1/200

Measuring the efficiency of Serbian insurance companies

The transition period, and the still ongoing economic crisis, amplify the volatility in the domestic insurance market and forces the management of insurance companies to continuously monitor changes in the market, i.e. to identify risks and opportunities, and therefore to undertake certain activities. The focus of the business of insurance companies is based on satisfying the needs of existing and potential clients. Respecting the current situation in the insurance market in anticipation of future events, the management of insurance companies must create and implement the optimal strategy in line with the company’s capabilities. For this purpose it is necessary to measure the efficiency of the business, which is the subject of this paper where the Data Envelopment Analysis (DEA) method is applied to the case of insurance companies operating in Serbia