Stochastic network DEA-R models for two-stage systems

In this paper, we present for the first time the on-field production process of soccer teams as a mixed (serial and parallel) structure two-stage network system. According to this, the first stage consists of two distinct sub-processes (offense and defense) that operate in parallel. These respectively use players’ offensive and defensive actions as inputs to produce two different intermediate measures, namely, goals scored and prevention of goals conceded. These, in turn, are the inputs of the second stage (points’ accumulation sub-process) that produces accumulated points. Furthermore, based on a two-stage network Data Envelopment Analysis (DEA) model, we estimate the offensive, defensive, and athletic efficiency of soccer teams during a league season. According to our proposed framework, these three different efficiency scores are provided (for each soccer team under evaluation) by a single linear programming problem. For this purpose, aggregate-over-games statistics from the 2013–14 Greek premier soccer league are used.

Allocation of SO2 emission rights in city agglomerations considering cross-border transmission of pollutants: A new network DEA model

This study aimed to measure the efficiency scores of 75 dairy buffalo farms in the province of Nueva Ecija, Central Luzon, Philippines, using an input-oriented, variable-return-to-scale Data Envelopment Analysis (DEA) model. The farmer-informants or decision-making units (DMUs) were categorized as smallholders, family modules, and semi-commercial in operations. Personal interviews using structured questionnaires were done to gather various information on the socio-economic and management practices of the DMUs. Output in the form of volume and value of milk produced and inputs such as quantities and costs of biologics, feeds, forage, and labor were also collected and evaluated among individual DMUs. The efficiency scores were computed using PIM-DEA software, which identified fully efficient DMUs lying on the frontier line (scores of 1.0) and those enveloped by it (inefficient DMUs with scores of less than 1.0). The overall mean Technical Efficiency (TE), Allocative Efficiency (AE), and Economic Efficiency (EE) scores among the DMUs were 0.80, 0.81, and 0.65, respectively. Most of the inefficient DMUs were in the smallholder category. In sum, smallholder DMUs classified under low and moderate TE clusters should reduce their inputs by 53.31% and 40.01%, respectively, to become fully efficient. Likewise, higher lambda values among efficient peer DMUs indicate the best practice frontiers that the inefficient peer DMUs can benchmark with. Extension and advisory services can help promote the best management practices of the frontiers to improve the TE, AE, and EE of the inefficient DMUs.

Background: Gains in bank efficiency improvement have widely been regarded as one of the most effective and efficient means of ensuring sustainability of a financial system. Aim: This article proposes a relative dynamic two-stage network data envelopment analysis model for measurement of bank efficiency based on the slack-based measure. Setting: Twenty-seven banks in Ghana during the period of 2009–2014. Methods: By considering simultaneous processes within the framework of two-stage data envelopment analysis, the slack-based measure approach identifies the sources of inefficiency in the banks. Results: In the empirical analysis, non-performing loans are an undesirable output in one production process, which should also be treated as a carry-over factor; that is to say, some non-performing loans from the preceding year can be collected in the current year. The carry-over factors should be used to indicate the presence of performance gaps that exist in the banks. The proposed model was used to measure the efficiency of the 27 banks in Ghana during the period of 2009–2014. We also present useful suggestions for improvement in bank efficiency based on the empirical results. Conclusion: The 27 main commercial banks in Ghana are far from efficient. For all banks, the efficiency score in the second stage is much higher than that of the first stage. That means more attention should be paid to the first stage of production in order to increase the banks’ efficiency.

No abstract available.

Nowadays, the growth of industry can be seen as a nature of the world. Each company race again each other to increase productivity to produce new, high quality and product that fulfil customer demand. One can achieve the Key Performance Indicator (KPI) or targeted goal but without considering the cost, manpower, time or others elements is inefficient toward productivity. Upgrade production line in manufacturing industry needs huge investment to come out with good performance. The company can receive Return of Investment (ROI) and save more money from paying labor salary and increase productivity. However, the company also may have the risk of losing their money from the investment done. In this research, we studied the effectiveness of production line that equipped with automation usage to determine the productivity and quality of the product produced. We apply Data Envelopment Analysis (DEA) to measure efficiencies of the production line where DEA is one of an excellent tool that can evaluate efficiencies and have been using widely in many sectors. The model that will be used in this study is Two-Stage Network DEA. As a case study, this research focuses on the production line that producing a product with a high and continues demand to observe how the investment on automation can give good return or otherwise.

Turbofan aero-engine efficiency evaluation: An integrated approach using VSBM two-stage network DEA

When the number of Decision-Making Units (DMUs) is not large enough compared to the total number of input parameters and outputs, traditional Data Envelopment Analysis (DEA) and Network Data Envelopment Analysis (NDEA) models often produce solutions that identify many DMUs as efficient, in addition to obtaining unrealistic weight distributions. In fact, this poor discrimination power and unrealistic weight distribution presented by DEA and NDEA models remain a major challenge, leading to the development of models to improve this performance. Thus, this paper proposes a Multiple Criteria Network Data Envelopment Analysis (MCNDEA), based on relational NDEA models. The idea of this model is to be used in network structures. To test the MCNDEA model, one a real instance linked to an evaluation problem of academic departments of a public university was used. Other instances were also used to validate the proposed MCNDEA, and these tests are included in the supplementary files. Finally, it should be noted that, in summary, the model proposed in this article had greater discrimination power of the analyzed DMUs, being able to identify the most efficient departments in each of the considered stages, besides pointing out to the University Management points of improvement regarding the best use of its resources for each department.

This paper uses Data Envelopment Analysis (DEA) to evaluate how the technical efficiency of forest harvesting operations is influenced by terrain conditions and forest attributes, in addition to exploring the existence of other influencing factors. To this end, 643 shift-level observations of harvesting operations on 253 distinct harvested sites were used. The aim of this study is to highlight the harvester’s ability to maximize the outputs, represented by the number of assortments for various tree species, given inputs such as harvest volume, harvest time for various tree species, and distance traveled by the harvester. Operational environment variables such as harvest, or decision-making unit (DMU) size, shape, and terrain characteristics were included. We found large variations in efficiency scores, and that inefficient harvest operations could theoretically be improved by reducing input by up to ca. 80%. A second stage regression estimation was applied to identify which factors significantly affected inefficiency. It was found that the inefficiency decreases with increasing stem-volume for pine and broadleaves, increasing stand density, and increasing share of pulpwood and non-marketable timber, while it increases with the number of logs produced per tree (in broadleaves). Inefficiency increases also with an increasing ratio of actual travel distance to minimal travel distance. The study shows how adopting DEA methods in forest operations might be used in combining efficiency analysis and environmental factors, by identifying and measuring inefficiency due to, for example, difficult terrain.

Performance or efficiency evaluation is of great importance for effective supply chain management, especially in the context of sustainable development and platform economy. In existing literature, two-stage network data envelopment analysis (DEA) has been widely used for supply chain efficiency evaluation. Although existing supply chain DEA usually assumes two-stage systems resolve the inherent conflicts between two stages, e.g. the supplier and manufacturer in a two-echelon supply chain, the relation of supply chain DEA to traditional ‘black box' DEA remains unclear. Moreover, the coordination effect between the two stages is ignored. In this paper, we define the coordination efficiency and propose a DEA-based approach for measuring the coordination effect of supply chain systems. We prove that the proposed multiplier DEA approach is equivalent to the envelopment DEA one. The proposed approach in this paper is verified via a numerical example from a supplier–manufacturer sustainable supply chain on resin companies finally.

A characteristic of data envelopment analysis (DEA) is to allow individual decision-making units (DMUs) to select the factor weights that are the most advantageous for them in calculating their efficiency scores. This flexibility in selecting the weights, on the other hand, deters the comparison among DMUs on a common base. In order to rank all the DMUs on the same scale, this paper proposes a compromise solution approach for generating common weights under the DEA framework. The efficiency scores calculated from the standard DEA model are regarded as the ideal solution for the DMUs to achieve. A common set of weights which produces the vector of efficiency scores for the DMUs closest to the ideal solution is sought. Based on the generalized measure of distance, a family of efficiency scores called ‘compromise solutions’ can be derived. The compromise solutions have the properties of unique solution and Pareto optimality not enjoyed by the solutions derived from the existing methods of common weights. An example of forest management illustrates that the compromise solution approach is able to generate a common set of weights, which not only differentiates efficient DMUs but also detects abnormal efficiency scores on a common base.

Unreasonable allocation of shared resources reduces the system efficiency and is a considerable operational risk. Sub-processes with insufficient portion of shared resources could not help accomplish complicated tasks, and overstaffing and idle resources will occur in the sub-processes assigned with redundant shared resources. This unfair portion distribution may cause internal contradictions among sub-processes and even lead to the collapsing of the entire system. This study proposes a data-driven, mixed two-stage network data envelopment analysis model. This method aims to reasonably define the allocation portion of shared extra intermediate resources among several nonhomogeneous subsystems and measure the overall system performance. A data set of 58 international hotels is used to test the features of the proposed model.

Strategic alliances and partnerships based on the semi-additive production technology in DEA

Data Envelopment Analysis (DEA) is the most popular mathematical approach to assess efficiency of decision-making units (DMUs). In complex organizations, DMUs face a heterogeneous condition regarding environmental factors which affect their efficiencies. When there are a large number of objects, non-homogeneity of DMUs significantly influences their efficiency scores that leads to unfair ranking of DMUs. The aim of this study is to deal with non-homogeneous DMUs by implementing a clustering technique for further efficiency analysis. This paper proposes a common set of weights (CSW) model with ideal point method to develop an identical weight vector for all DMUs. This study proposes a framework to measuring efficiency of complex organizations, such as banks, that have several operational styles or various objectives. The proposed framework helps managers and decision makers (1) to identify environmental components influencing the efficiency of DMUs, (2) to use a fuzzy equivalence relation approach proposed here to cluster the DMUs to homogenized groups, (3) to produce a common set of weights (CSWs) for all DMUs with the model developed here that considers fuzzy data within each cluster, and finally (4) to calculate the efficiency score and overall ranking of DMUs within each cluster.

Unoriented two-stage DEA: The case of the oscillating intermediate products