Data Envelopment Analysis Programming Research Articles

Decision-Making Conflict Measurement of Old Neighborhoods Renovation Based on Mixed Integer Programming DEA-Discriminant Analysis (MIP DEA–DA) Models

Renovating old neighborhoods for the benefit of people has become increasingly important in urban renewal. Nevertheless, old neighborhood renovations are currently considered a group decision-making issue under public participation, involving diverse decision-making subjects. Conflicts within a group are a common problem during group decision-making. In this paper, conflict is examined in the decision-making process for renovating old neighborhoods and novel ideas are provided for quantifying conflict. Public participation in old neighborhood renovations is assessed using conflict degree calculations in group decision-making. Based on the preferences of decision-making experts, a MIP DEA–DA (Mixed Integer Programming Data Envelopment Analysis–Discriminant Analysis) based partial binary tree cyclic clustering model is constructed for clustering experts, and an aggregated group conflict indicator and an aggregated conflict vector are computed, allowing for the quantification of conflict during the renovation process of the old neighborhood based on actual situations. Results indicate that there is primarily a conflict between the benefits of decision-making subject interests and the professionalism of decision-making renovations. This paper contributes to improving public participation, promoting the application of group decision-making theory in old neighborhood renovation, reducing conflict between decision-makers, and speeding up urban renewal.

Measuring efficiency in the Nigerian banking system: A critical review

An efficient banking system is important for wealth creation, job creation, and trade facilitation, as it provides a way for individuals and businesses to participate in their local and global economy, thus facilitating economic growth and development. The purpose of this study is to examine the effectiveness of using data envelopment analysis (DEA) in measuring efficiency in the Nigerian banking system with the data envelopment analysis program. A critical review of selected peer-reviewed empirical studies was conducted. Papers were assessed to determine their inclusion or exclusion in the review process. For analytical purposes, the studies were generally grouped into two, namely, those that used one approach to measuring bank efficiency and those that used multiple approaches to measuring bank efficiency. Based on the critical review of extant literature conducted, findings suggest that there is a growing rate of adoption of DEA as a means of measuring bank efficiency in Nigeria, also that DEA has proved to be a scientific and effective means of measuring bank efficiency. Keywords: Decision-making units, return to scale, scale efficiency, technical efficiency;

Measurement the Economic Efficiency and Risk Management Strategy for Projects of Table Eggs Production in Diyala Governorate

Purpose: The aim of the research is to estimate the cost efficiency and technical and Allocavtive components of egg production projects and to identify risk management strategies. Theoretical framework: These include Data Envelopment Analysis Program (DEAP), a method of linear programming in estimating the economic efficiency in addition to strategic use in risk management. Design/methodology/approach: The data was collected from 44 egg chicken projects, collected randomly from Diyala county districts for 2018, for achieving economic efficiency of agriculture and risk management strategic for projects of table egg production . Findings: by using of Data Envelopment Analysis with a input orientation. technical efficiency about averaged 0.995, which is highly efficient,. Allocavtive efficiency was 0.99. By linking the relationship between economic efficiency and some administrative variables, some of which are direct and inverse. Practical & Social implications: The study benefits table egg producers, including their knowledge of the optimal use of resources for the actual use of resources through the study of economic efficiency. The study showed how to deal with risks in their projects. Outside the farm, the coping strategy to face risks is in lending, and thus this study is used at present and in the future in these investment projects.. Originality/value: That the poultry sector is an investment and commercial sector, it is necessary to study the resources efficiency used and because it contains risks, so a strategy must be developed to protect the product from these risks.

Applying Integrated Data Envelopment Analysis and Analytic Hierarchy Process to Measuring the Efficiency of Tourist Farms: The Case of Slovenia

This paper examines the efficiency of tourist farms in Slovenia by adopting an approach using a framework of non-parametric programming—Data Envelopment Analysis (DEA) and Analytic Hierarchy Process (AHP), combining the two because the DEA analysis by itself does not take into account all attributes, especially qualitative ones. The beforementioned two methods rank the farm tourism units with respect to their efficiency. By using the DEA method, an input- and output-oriented BCC and CCR model were introduced to upgrade the criteria by including the additional non-numerical criteria of the AHP. The results of the models showed that there are possible improvements on all levels of efficiency, as well as on the criteria of the additional offer of tourist farms, which were analyzed in the AHP model with additional criteria. According to the estimated efficiency, the ranking of tourist farms differed according to the two methods. Within the group of farms assessed as efficient by DEA, the AHP model allowed a more accurate ranking.

Impact of Government Initiatives on Total Factor Productivity of Pigeon Pea Cultivation in India

Background: India is the largest producer as well as consumer of pulses in the world due to higher relance of their people on vegetarian sources of proteins, however, we have been dependent on import of pulses for meeting our demand for pulses over several decades. As a strategy to be self-reliant in pulses production two important initiatives were taken by the government of India viz. implementation of Accelerated Pulses Production Program (A3P) and inclusion of pulses in the National Food Security Mission (NFSM-Pulses) during 2010-11. Pigeon pea has tremendous medicinal and pharmacological properties and uses in addition to the good quality source of proteins. Significant improvement observed in production and productivity of pigeon pea after the A3P and NFSM-Pulses was questioned for its Total Factor Productivity (TFP) growth. Methods: This study was designed to assess impact of A3P and NFSM-Pulses on TFP of Pigeon pea in major Indian producing states. TFP was estimated with the help of Malmquist Productivity Index (MPI) using Data Envelopment Analysis Program (DEAP) version-2.1 in five states of India viz., Gujarat, Karnataka, MP, Maharashtra and UP which contribute more than three-fourth pigeon pea production in India. Result: TFP change in period-II (after A3P and NFSM-Pulses) was invariably higher than the TFP change in period-I (before the initiatives) in all the studied states. It indicates that these government initiatives contributed to the enhancement of production and productivity of pigeon pea with the support of better technology adoption rather than just led by higher use of inputs.

Significant inefficiency in running community health systems: The case of health posts in Southwest Ethiopia.

Although much has been documented about the performance of the health extension program, there is a lack of information on how efficiently the program is running. Furthermore, the rising cost of health services and the absence of competition among publicly owned health facilities demands strong follow up of efficiency. Therefore, this study aimed to assess the technical efficiency of the health posts and determinants in Southwestern Ethiopia. We used data for one Ethiopian fiscal year (from July 2016 to June 2017) to estimate the technical efficiency of health posts. A total of 66 health posts were included in the analysis. We employed a two-stage data envelopment analysis to estimate technical efficiency. At the first stage, technical efficiency scores were calculated using data envelopment analysis program version 2.1. Predictors of technical efficiency were then identified at the second stage using Tobit regression, with STATA version 14. The findings revealed that 21.2% were technically efficient with a mean technical efficiency score of 0.6 (± 0.3), indicating that health posts could increase their service volume by 36% with no change made to the inputs they received. On the other hand, health posts had an average scale efficiency score of 0.8 (± 0.2) implying that the facilities have the potential to increase service volume by 16% with the existing resources. The regression model has indicated average waiting time for service has negatively affected technical efficiency. More than three-quarters of health posts were found inefficient. The technical efficiency score of more than one-third of the health posts is even less than 50%. Community mobilization to enhance the uptake of health services at the health posts coupled with a possible reallocation of resources in less efficient health posts is a possible approach to improve the efficiency of the program.

Promotion of Low-Carbon Economy through Efficiency Analysis: A Case Study of a Petrochemical Plant

Over the past few decades, industrial development has caused a dramatic increment in greenhouse gas (GHG) emissions, as a leading cause of climate change. Modifying the industrial plants' environmental performance is the main pillar of improving efficiency that can reduce the waste of resources and make achieving lower-cost global emission reduction targets of the Kyoto protocol's clean development mechanism (CDM) possible. Considering the essentiality of knowledge-based research in increasing the awareness of policymakers by providing better access to accurate and reliable information, an analytical survey on efficiency in oil, gas, and petrochemical industries has been conducted by applying data envelopment analysis (DEA). For this purpose, comprehensive evaluations were elaborated on monthly data for Zagros Petrochemical Company (ZPC), from 2011 to 2017, as a case study. The CO2 equivalent emissions of fuel combustion in the petrochemical plant's furnaces were calculated according to standard guidelines for calculation and reporting GHG to be used for environmental efficiency estimations. The data envelopment analysis program (DEAP) was applied to estimate efficiencies through the data envelopment analysis-materials balance principle (DEA-MBP) approach, which is a robust approach employed in this study to provide practical solutions to both economic and environmental concerns. Since DEA-MBP is based on the materials balance principle and incorporates by-products, it can reliably explain the best relationship between product quantities, carbon emissions, and external costs. The outcomes revealed that the lower heating value of natural gas and CO2 emission factor and CO2 equivalent emissions were 32.87 × 10–3 GJ/Sm3, 55.73 × 10–3 ton/GJ, and 2,376,449 tons, respectively. DEAP analysis also exhibited the technical, environmental, and environmental allocative efficiency scores as 0.976, 0.861, and 0.881, respectively, and estimated distances to efficiency frontiers were 0.024, 0.139, and 0.119, respectively. Ultimately, the carbon prices were found to be about US$83,175,715 and US$71,531,110 under two scenarios (A and B).

Efficiency And Productivity Analysis In Turkish Banking Sector With Data Envelopment Analysis And Malmquist Index

The aim of this study is to analyze the efficiency and productivity of 3 public, 6 private and 6 foreign deposit banks operating in the Turkish banking sector with the help of data envelopment analysis and Malmquist index.For this purpose, the efficiency of 15 deposit banks operating in the Turkish banking sector between 2014 and 2018 was measured and whether the efficiency of Malmquist productivity index changed over the years. In the study, input-oriented Charnes Cooper and Rhodes (CCR) model was used under the assumption of constant return to scale and 4 input 2 output variables were selected. Inputs in efficiency and productivity measurement are defined as; personnel expenses / total assets (%), total loans / total assets (%), equity / total assets (%), total deposits / total assets (%), outputs are defined as; the earning power of assets (net profit / total assets), the earning power of equity (net profit / equity) (%). The Windows Data Envelopment Analysis Program (Win4Deap) package program was used in the analysis and brokerage approach was adopted. While 4 banks were active under the Constant Return to Scale(CRS) assumption between 2014 and 2018, 8 banks were found active under the assumption of Variable Return to Scale (VRS).Inefficient banks; target values were calculated by slacks movement and radial movement values to their original values and it was found that the lambda values calculated by Win4Deap program and which banks are peers. The changes observed in Malmquist total factor productivity, technical efficiency, technological efficiency, pure efficiency, scale efficiency and total factor productivity were analyzed as a whole and decision-making units experienced improvement in the 2016-2017 period.

Input-use Efficiency of Irrigation Farmers in Southwest Nigeria

This study estimated the technical and water-use efficiency of irrigation farmers in Southwest Nigeria. A multistage sampling procedure was employed to interview one hundred and eighty-five irrigation farmers. Descriptive statistics, Data Envelopment Analysis Program (DEAP) and Tobit regression model were used to describe and analyze the determinants of inefficiency among irrigation farmers. The result of the descriptive statistics showed that there were more male farmers (82.2%) with a mean household size of 3.7. The mean area of irrigated land was 1.29ha. with about 84 percent of farmers cultivating on rented land. The average income from irrigation farming was N 38,650.27 per month. The sprinkler irrigation (Centre Pivot) was used by 85.4% of the farmers. The water fee for farmers was N 10,000 and the average cost of diesel for irrigating their farmland was estimated to be N 34,400 per production. The variation in input use and the output produced is considerably large. The DEAP results showed that on average, the farmers achieved only 79% Constant Return to Scale (CRS) technical efficiency, 85% Variable Return to Scale (VRS) technical efficiency and 22% water use efficiency. The Tobit regression results showed that farmers’ characteristics like age (0.008), household size (0.048), area of land irrigated (0.000), income (0.075) and drip irrigation method (0.041) were significant under CRS, whereas gender, education, experience, labour and sprinkler irrigation method were not significant. Under VRS model, significant variables includes age (0.032), gender (0.003), education (0.080), experience (0.059) and area of land irrigated (0.000), while gender (0.004), household size (0.086), education (0.027), experience (0.045), area of land irrigated (0.000) and labour (0.089) were significant for sub-vector VRS. It appears that farmers have little incentives to use water in an efficient way. In this sense, a public-private partnership could trigger better management of irrigation facilities and efficient water use among farmers.

Human capital in public research laboratories: a method proposal for assessing actual and target scores

PurposeThis work aims to propose an alternative method of human capital calculation for research laboratories of public university, taking into account some drawbacks of the methods currently applied in this field.Design/methodology/approachThis method is implemented via a linear program extracted from Data Envelopment Analysis based on slack movement. This is the formulation of Copper et al. (2000), which is used as the starting point for developing the proposed method through important transformations.FindingsThe proposed method is supported by an illustration related to a Moroccan public university. This illustration showed that 57 per cent of the laboratories and all the research activities that they perform are in deficit with respect to target scores.Research limitations/implicationsThe proposed method has technical limitations related to scores equal to 1 and to variables when those are numerous. To solve them, it is possible to use peer benchmarking system for the first limitation, and methods of regrouping the variables when those are numerous for the second limitation. Equally, the proposed method does not associate slack with important factors like governance and the impact analysis of research on innovation, competitiveness, and societal aspects. Likewise, it does not use the slack to measure individual efficiency at the same laboratory. Future research can fill these gaps.Practical implicationsThis work allows making appropriate budgetary and research policy within university, through budgeting process and management control by using raw and adjusted target values as well as actual ones. Also, the highlighting of the excessive slacks leads the university to take actions to reduce them, according to the most loss-making research activities.Originality/valueThe proposed method is original, since it fills a deficit in terms of human capital target values calculation and of the slack movement concept in relation to the efficient frontier. Additionally, it transforms the Data Envelopment Analysis program into a program that eliminates the slacks linked to the inputs, the radial movement related to the outputs and treats only the outputs and slacks related to these outputs.

Cluster-Adjusted DEA Efficiency in the presence of Heterogeneity: An Application to Banking Sector

Abstract This paper improves on the issues of extreme data points and heterogeneity found in the linear programming data envelopment analysis (DEA) by presenting a cluster-adjusted DEA model (DEA with cluster approach). This analysis, based on efficiency, determines the number of clusters via Gap statistic and Elbow methods. We use the December quarterly panel data consisting of 122 U.S agricultural banks across 37 states from 2000 to 2017 to estimate the cluster-adjusted DEA model. Empirical results show differences in the estimated DEA efficiency measures with and without a clustering approach. Furthermore, using non-parametric tests, the results of Ansari-Bradley, Kruskal Wallis, and Wilcoxon Rank Sum tests suggest that the cluster-adjusted DEA model provides statistically better efficiency measures in comparison to the DEA model without a clustering approach.

Variable selection in Data Envelopment Analysis

The selection of inputs and outputs in Data Envelopment Analysis (DEA) is regarded as an important step that is normally conducted before the DEA model is implemented. In this paper, we introduce cardinality constraints directly into the DEA program in order to select the relevant inputs and outputs automatically, without any previous statistical analysis, heuristic decision making or expert judgement (though our method is not incompatible with these other approaches and indeed may help to choose among them). The selection of variables is obtained solving a mixed integer linear program (MILP) which specifies the maximal number of variables to be used. The computational time of the program is fast in all practical situations. We explore the performance of the method via Monte Carlo simulations. Some empirical applications are considered in order to illustrate the usefulness of the method.

MEASURING THE IMPACT OF THE APPLICATION OF TOTAL QUALITY MANAGEMENTS ON THE ECONOMIC EFFICIENCY OF SOME PROJECTS OF PROCESSING AND DRYING AGRICULTURAL CROPS

The study aimed to measure the impact of the application of Total QualityManagement (TQM) on the economic efficiency of some projects of processing and dryingagricultural crops in Fayoum and Beni-Suef governorates using Data Envelopment AnalysisProgram. The study reached some of the most important results: The rate of economicefficiency in the model of change in return on capacity for the cost of raw material 100% inboth fennel and mint. The projects that implement the quality system and the economicefficiency of the fennel product are about 77% in projects that do not apply the qualitysystem. The yield is increasing, there is a need to increase costs by 23%. The percentage ofmint production is about 80% in projects that do not apply the quality system. The yield isincreasing, there is a need to increase costs by 20%, in order to reach the optimal size. Aswell as the economic efficiency in the model of change in return on a capacity for the costof raw material is 100% in all fennels, mint, hibiscus and parsley. The projects implementthe quality system. The projects that do not apply the quality system, the rate of economicefficiency in the model of change in return on capacity for the cost of the raw material of thefennel product is about 79%. Consequently, full efficiency was not achieved. Therefore,there is inefficiency of 21%, and its percentage in the product of mint about 80%. Thus, fullefficiency is not achieved because (the efficiency index is less than 1). So there is aninefficiency of 20%. The rate of economic efficiency in the stability of return on capacityfor other costs 100% in the fennel, the projects that applied the quality system. Theeconomic efficiency of the fennel product is about 76% in projects that do not apply thequality system. The yield is increasing, there is a need to increase costs by 24%, in order toreach the optimal size. The economic efficiency in the model of change in return on acapacity for the other cost is 100% in the fennels. The projects that are applied the qualitysystem. The rate of economic efficiency in the model of change in return on capacity for theother costs of the fennel product is represented 99%. The projects that do not apply thequality system, consequently, full efficiency were not achieved. Therefore, there isinefficiency of 1%. The economic efficiency in the model of change in return on capacityfor the other costs is 100% in the product of the hibiscus, in the projects that apply and donot apply the quality system.

Efficiency measures in fuzzy data envelopment analysis with common weights

This work considers providing a common base for measuring the relative efficiency for all the decision-making units (DMUs) with multiple fuzzy inputs and outputs under the fuzzy data envelopment analysis (DEA) framework. It is shown that the fuzzy DEA model with common weights can be reduced into an auxiliary bi-objective fuzzy optimization problem by considering the most and the least favorable conditions simultaneously. An algorithm with the implementation issue for finding the compromise solution of the fuzzy DEA program is developed. A numerical example is included for illustration and comparison purpose. Our results show that the proposed approach is able to provide decision makers the flexibility in measuring the relative efficiency for DMUs with fuzzy inputs and outputs, which not only differentiates efficient units on a common base but also detects some abnormal efficiency scores calculated from other existing methods.

Decomposing Total Factor Productivity of Sudanese Sugarcane Factories (2000-2007)

This paper reports the measure of total factor productivity change (TFPCH) for the Sudanese sugarcane factories: An empirical analysis with reference to Sudanese sugar companies (Kenana, Gunied, New Halfa, Sinnar and Assalaya). Based on Data Envelopment Analysis Program (DEAP) Software Version 2.1, using model of input– oriented Malmquist indices of total factor productivity (TFP). Relevant secondary data were collected and analyzed to meet the stated objectives. This paper aimed to decompose TFPCH into two components: Technological change (TECH) and technical efficiency change (EFCH) and the latter was further divided into scale efficiency change (SEFCH) and pure efficiency change (PEFCH). In the study on Sudanese sugarcane plants, the innovation was improving up and down of TECH over time. Scale efficiency operating in Kenana was remained constant return to scale, and total factor productivity was positive. For measuring the scale efficiency operating in Sudanese Sugar Company the results suggest that the scale efficiency was constant return to scale in Gunied and New Halfa compared to increased return to scale in Sinnar and Assalaya. The study recommended that the policy maker in the Sudanese Sugar Company and managers of other sugar factories should make effort to benefit from added value of sugar industry through downstream processes of sugarcane by-product such as molasses bagasse and filter cake, which could be utilized usefully for animal feed, energy and ethanol production.

A mixed integer bi-level DEA model for bank branch performance evaluation by Stackelberg approach

One of the most complicated decision making problems for managers is the evaluation of bank performance, which involves various criteria. There are many studies about bank efficiency evaluation by network DEA in the literature review. These studies do not focus on multi-level network. Wu (Eur J Oper Res 207:856–864, 2010) proposed a bi-level structure for cost efficiency at the first time. In this model, multi-level programming and cost efficiency were used. He used a nonlinear programming to solve the model. In this paper, we have focused on multi-level structure and proposed a bi-level DEA model. We then used a liner programming to solve our model. In other hand, we significantly improved the way to achieve the optimum solution in comparison with the work by Wu (2010) by converting the NP-hard nonlinear programing into a mixed integer linear programming. This study uses a bi-level programming data envelopment analysis model that embodies internal structure with Stackelberg-game relationships to evaluate the performance of banking chain. The perspective of decentralized decisions is taken in this paper to cope with complex interactions in banking chain. The results derived from bi-level programming DEA can provide valuable insights and detailed information for managers to help them evaluate the performance of the banking chain as a whole using Stackelberg-game relationships. Finally, this model was applied in the Iranian bank to evaluate cost efficiency.

Eficiência das Instituições de Microcrédito: uma aplicação de DEA/VRS no contexto brasileiro

O objetivo do presente artigo foi avaliar a eficiência de instituições de microcrédito brasileiras sob dois enfoques distintos: financeiro e social. Em termos metodológicos, foi utilizada a técnica de programação linear Data Envelopment Analysis - DEA com retornos variáveis de escala (DEA/VRS) aplicada sobre uma amostra de instituições listadas na base THE MIX em 2008, 2009 e 2010; e o Índice de Malmquist para análise das variações de produtividade e eficiência ao longo do tempo. Os resultados evidenciam maiores escores de eficiência social comparativamente à financeira para cada ano individualmente. A análise temporal revelou aumento da produtividade sob ambas as abordagens. Esse aumento refletiu variações efetivas da eficiência técnica, em maior grau, no modelo social, e deslocamentos da fronteira tecnológica no modelo financeiro. De modo geral, esses resultados sinalizam uma maior homogeneidade das instituições no que se refere a medidas e práticas relacionadas à eficiência social comparativamente à financeira.

Crime Rates and Police Efficiency

This paper measures the relative efficiency of 50 municipal police departments in New York State using an output-oriented data envelopment analysis programming model and finds that 30 departments are efficient, while 20 could improve their efficiency. Adoption of best practice methods in the 20 laggard agencies could reduce violent crime by an average 173 percent and property crime by 64 percent. We find that four factors show statistically significant effects on violent and property crime “output:” the number of community policing officers, the number of employment screening techniques, the number of mobile computer devices deployed, and the number officers employed in special drug units.

Role of Decision Making Models in District Scenario Planning

While a country is surging ahead from a developing country to the status of a developed nation, the term has a connotation, both in terms of macro-level or micro-level development. When referred at the country level it becomes macro-level development, while at districts, it becomes microlevel development. At the sub-state level, “District” is the basic unit for all administrative purpose and also consistent with the decentralized planning process prevailing at the grass-root. However, the planning and development at district level can be further subdivided into urban planning and rural planning. Urban planning basically focuses on urban areas for its planned development with proper land use. These activities are generally taken cared by respective Urban Development Authorities. Planning at rural level can further be zeroed down to village / habitation. As part of the Planning objectives, Rural Planning needs to reflect growth and social justice, as growth in the rural sector has been identified as the key to social and economic development. Development involves making decisions and informed choices amongst alternative possible development paths. Therefore, it is important that these decisions are made using the best information, methods and tools available in an effective manner. The information to be considered for planning may be of sectoral or non-sectoral in nature. Today’s scenario is focused on planning and each department plans for assigned limited sectoral development. However development of each sector is dependent on each other. For this purpose planners take decisions on the questions like Where, Why, How etc. When we talk about decisions, there are various decision models available to choose from depending upon the requirement. This paper deliberates the aspects of sectoral planning and the role of decision models in this planning process and its effectiveness with respect to planning. General Terms Multiple Criteria Decision Analysis (MCDA), Analytic Hierarchy Process, Goal Programming Data Envelopment Analysis.

BiLevel programming Data Envelopment Analysis with constrained resource

A new BiLevel programming Data Envelopment Analysis (DEA) approach is created to provide valuable managerial insights when assessing the performance of a system with Stackelberg-game relationships. This new approach allows us to evaluate the firm performance in decentralized decisions, which consist of the objective(s) of the leader at its first level and that is of the follower at the second level. This approach can help decentralized companies to optimize their performance using multiple inputs to produce multiples outputs in a cost-effective way, where both the system “black-box” and subsystem performance are exposed in details. We show the algorithms and solutions to our new models. We illustrate and validate the proposed new approach using two case studies: a banking chain and a manufacturing supply chain. The computation shows that subsystem being efficient at all levels results in an overall efficiency achievement in a decentralized BiLevel structure.