Network DEA based on DEA-ratio

Data envelopment analysis (DEA) is a technique to measure the performance of decision-making units (DMUs). Conventional DEA treats DMUs as black boxes and the internal structure of DMUs is ignored. Two-stage DEA models are special case network DEA models that explore the internal structures of DMUs. Most often, one output cannot be produced by certain input data and/or the data may be expressed as ratio output/input. In these cases, traditional two-stage DEA models can no longer be used. To deal with these situations, we applied DEA-Ratio (DEA-R) to evaluate two-stage DMUs instead of traditional DEA. To this end, we developed two novel DEA-R models, namely, range directional DEA-R (RDD-R) and (weighted) Tchebycheff norm DEA-R (TND-R). The validity and reliability of our proposed approaches are shown by some examples. The Taiwanese non-life insurance companies are revisited using these proposed approaches and the results from the proposed methods are compared with those from some other methods.

Finding Targets in Non-Radial FDH Models: A Hybrid Technique Based on STEM and Extended Ratio Based Approach

Performance evaluation using interactive methods and extended ratio-based approaches can be very important for some organizations. Free disposal hull models can be created if there is no concern for convexity, and using non-radial DEA models can simultaneously create more logical and practical situations for finding DMU targets. In this paper, a new hybrid technique based on the additive slack based method and enhanced Russel measure in variable return to scale technology has been proposed. The proposed technique can find decision making unit targets in non-radial free disposal hull models using the step method. Furthermore, the extended ratio-based approach in the proposed technique has been applied to find DMU targets of related non-radial free disposal hull models without solving any mathematical programming models. Finally, targets of Fars province pharmaceutical distributing companies were found by applying the proposed hybrid technique.

The Environmental Efficiency Analysis Based on the Three-Step Method for Two-Stage Data Envelopment Analysis

This paper suggests that the efficiency of a system (decision-making unit) and its subsystem cannot be properly measured using a two-stage data envelopment analysis (DEA) model either in cooperative or non-cooperative evaluation. Indeed, the existing methods subjectively determine the status of the subsystems in the whole system. The two-stage DEA models, either cooperative game or non-cooperative game, are used to analyze the environmental efficiency. However, when the actual relationship between the two subsystems is inconsistent with the subjective relationship assumptions, the overall efficiency of the system and the efficiency of each subsystem will be biased. The conventional two-stage DEA models require predetermining the relationship between the subsystems within the system based on the subjective judgment of the decision-maker. Based on this, this paper proposes a three-step method to solve the two-stage DEA. First, the position relation among subsystems is determined according to the optimal weights through the model. According to the status relationship among subsystems, the decision units are grouped, and the two-stage DEA model of cooperative game or non-cooperative game is used to analyze the efficiency in each group. This method reduces the subjectivity of decision making and analyzes the efficiency of each decision unit applying the most appropriate two-stage DEA model to find the source of inefficiency. Finally, this paper verifies the rationality and validity of the method by analyzing the water use efficiency of industrial systems in China. It is found that most regions in China value economic development more than environmental protection (as evidenced by the DEA weights). What is more, the method proposed by the paper can be generalized for any two-stage DEA problem.

Weight restrictions for the DEA model in the presence of dual-role factors: An application to the Iranian banking sector

A production process transforming multiple inputs to different outputs is considered in conventional data envelopment analysis (DEA) models. In various settings, however, there are factors that simultaneously play the roles of both input and output called dual-role factors. In some situations, additional information is available to impose on a DEA model with dual-role factors, or the decision maker is forced to impose some restrictions regarding the importance of dual-role factors on the model. Toward this end, the current research employs two different weighting methods to introduce various weighted DEA models in the presence of dual-role factors. To strengthen the accuracy of the new models, their properties are discussed. Then, each new model is illustrated in details by a numerical example. Moreover, to show that the new models are applicable, they are applied to the Iranian banking sector. To do this, $ 20 $ bank branches which have dual-role factors are assessed. At last, to show the outcome of weight restrictions, the results obtained by each new model are compared with those from Cook and Zhu's model (2007).

Multi-Layer Fuzzy Sustainable Decision Approach for Outsourcing Manufacturer Selection in Apparel and Textile Supply Chain

The apparel and textile industry are known as a key sector in the structure of many economies around the world. In particular, the influence of foreign outsourcing manufacturers on textile supply chains has been recognized for decades. The outsourcing manufacturers are multi-criteria selected and changed by supply chain managers from time to time in search of the most efficient state for the entire supply chain. This is a known concern with the community and there is large interest in studying the apparel and textile outsourcing manufacturer problems. Aiming at reinforcing the selection methods, this study develops a three-layer fuzzy multiple criteria decision-making approach that leverages the strengths from the original methods. In turn through the layers, the hierarchy and weights of criteria and sub-criteria, which includes sustainability factors, are determined by the fuzzy analytic hierarchy process (FAHP) method. Next, the results from the fuzzy technique for order of preference by similarity to ideal solution (FTOPSIS) process determine the outsourcing manufacturer’s performance via expert linguistics judgments. Then, data envelopment analysis (DEA) models are applied for the purpose of evaluating the outsourcing manufacturer’s overall performance along with other quantitative effectiveness. This approach is applied to the problem of selecting the apparel and textile outsourcing manufacturers in Vietnam, one of the places that makes the necessity of this problem grow. The third position in the world apparel and textile export ranking, as well as the trend of shifting labor-intensive production systems to Southeast Asia make the necessity of Vietnam outsourcing manufacturer selection problem grow. The results of this study also classified manufacturers into groups as a support for selection decisions. Analysis of quantitative uncertainties using simulation tools and forecasting techniques can strengthen the solutions in future related studies.

Assess the Impact of the COVID-19 Pandemic and Propose Solutions for Sustainable Development for Textile Enterprises: An Integrated Data Envelopment Analysis-Binary Logistic Model Approach

The COVID-19 pandemic impacted many socio-economic areas of countries around the world. It has made the production and business situations of enterprises face substantial difficulties. In this study, the authors used data envelopment analysis (DEA) models to assess the impact of the COVID-19 pandemic on Vietnam’s textile and garment enterprises. The authors have used the binary logistic model to determine the factors affecting employees’ decision to change jobs in the textile industry. The research results showed that the COVID-19 pandemic greatly affected the business performance of the textile and garment enterprises in Vietnam. Moreover, the results helped identify the factors affecting employee turnover and proposed solutions to help businesses stabilize their personnel situation and develop sustainable businesses in the post-COVID-19 era.

A DANP-Based NDEA-MOP Approach to Evaluating the Patent Commercialization Performance of Industry–Academic Collaborations

The industry–academic collaboration (IAC) in developed and developing countries enables these economies to gain momentum in continuous innovation and, thus, economic growth. Patent commercialization is one major channel of knowledge flow in IAC. However, very few studies consider the flow of knowledge between industrial firms and universities. Moreover, ways that the patent commercialization performance of IACs can be evaluated are rarely discussed. Therefore, defining an analytic framework to evaluate the performance of IAC from the aspect of patent commercialization is critical. Traditionally, data envelopment analysis (DEA) models have widely been adopted in performance evaluation. However, traditional DEA models cannot accurately evaluate the performance of IACs with complex university–industry interconnections, the internal linkages, or linking activities of knowledge-flow within the decision-making units (DMUs), i.e., the IACs. In order to solve the abovementioned problems, this study defines a multiple objective programming (MOP)-based network DEA (NDEA), with weighting derived from the decision-making trial and evaluation laboratory (DEMATEL)-based analytic network process (ANP), or the DANP. The proposed analytic framework can evaluate the efficiency of decision-making units (DMUs) with a network structure (e.g., supply chains, strategic alliances, etc.) based on the weights that have been derived, based on experts’ opinions. An empirical study based on the performance of the patent commercialization of Taiwanese IACs was used to demonstrate the feasibility of the proposed framework. The results of the empirical research can serve as a basis for improving the performance of IAC.