Abstract
Multi-attribute decision making (MADM) is a cognitive process for evaluating data with different attributes in order to select the optimal alternative from a finite number of alternatives. In the real world, a lot of MADM problems involve some random and ordinal variables. Therefore, in this paper, a MADM method based on stochastic data envelopment analysis (DEA) cross-efficiency with ordinal variable is proposed. First, we develop a stochastic DEA model with ordinal variable, which can derive self-efficiency and the optimal weight of each attribute for all decision making units (DMUs). To further improve its discrimination power, cross-efficiency as a significant extension is proposed, which utilizes peer DMUs’ optimal weight to evaluate the relative efficiency of each alternative. Then, based on self-efficiency and cross-efficiency of all DMUs, we construct corresponding fuzzy preference relations (FPRs) and consistent fuzzy preference relations (FPRs). In addition, we obtain the priority weight vector of all DMUs by utilizing the row wise summation technique according to the consistent FPRs. Finally, we provide a numerical example for evaluating operation performance of sustainable development of 15 listed banks in China, which illustrates the feasibility and applicability of the proposed MADM method based on stochastic DEA cross-efficiency with ordinal variable.
Highlights
Sustainable development (SD) is a widely used phrase and idea, which firstly emerged in the context of environmental concerns [1,2,3]
To further extend the application of data envelopment analysis (DEA) on aforementioned Multi-attribute decision making (MADM) problems, we develop a MADM method based on stochastic DEA cross-efficiency with ordinal variable
The main purpose of this paper is to address the MADM problems with random and ordinal variables
Summary
Sustainable development (SD) is a widely used phrase and idea, which firstly emerged in the context of environmental concerns [1,2,3]. With the development of society and economy, we gradually realized the significance of sustainable development of economy. It is important to maintain the sustainable development of banks. Sustainable development of banks has become a hotspot. Munir and Gallagher [4] proposed that optimizing the benefits and costs can improve sustainable development of banks. Xue et al [5] considered that adjusting and optimizing the layout of the physical branches of commercial banks is crucial to its sustainable development. Jiang and Han [6] suggested that adopting diversification strategy is beneficial to achieving sustainable development of banks
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