Evaluating the Performance of Intercity Road Freight Transport: Double-Frontier Parallel Network Cross-Efficiency Model

Abstract

Performance assessment of Intercity Road Freight Transport (IRFT) involve a complex set of considerations to ensure the efficient transportation of goods between their origins and destinations. Notably, Data Envelopment Analysis (DEA) models are often the preferred approach for conducting assessment studies that involve multiple inputs and outputs. Even though the conventional Cross-Efficiency (CE) technique addresses the limitations of DEA in producing comparable results, it still fails to consider the evaluation of internal system operations. The use of Network CE leads to more realistic results in assessing problems. It addresses not only the limitations of the DEA model in producing comparable results but also considers the performance of internal operations and system efficiency. Incorporating CE into a Parallel Network System (PNS), which is known as CE-PNS, has also a significant drawback as it neglects both the optimistic and pessimistic viewpoints based on the efficient and anti-efficient frontiers simultaneously, and may therefore fail to provide a comprehensive analysis. The primary objective of this study is to propose a new double-frontier network CE that takes into account two perspectives simultaneously. Indeed, this study is the first to incorporate the concepts of CE and double-frontier DEA into a PNS to provide an effective tool for assessing Iranian IRFT. For this purpose, the Cross-Inefficiency (CIE) technique is first incorporated into the PNS, called CIE-PNS, which explores the relationship between system inefficiency and internal divisions. The CE-PNS and CIE-PNS may yield different results. Therefore, Double-Frontier CE for a PNS (DFCE-PNS) is derived by combining the efficiency results obtained from CE-PNS and CIE-PNS. This study also examines different inputs and outputs to assess the performance of Iranian IRFT. The results demonstrate that DFCE-PNS yields more comprehensive and reliable results.