scholarly journals Measurement of Congestion in the Simultaneous Presence of Desirable and Undesirable Outputs

2014 ◽  
Vol 2014 ◽  
pp. 1-9 ◽  
Author(s):  
H. Zare-Haghighi ◽  
M. Rostamy-Malkhalifeh ◽  
G. R. Jahanshahloo
Keyword(s):  
Environmental Performance ◽  
Data Envelopment ◽  
Undesirable Outputs ◽  
Simultaneous Presence ◽  
Gas Emission ◽  
New Approach ◽  
Waste Gas ◽  
Waste Discharge ◽  
Proposed Model ◽  
Desirable And Undesirable Outputs

The concept of congestion, which is mainly applied in economics, refers to a situation where inputs are overinvested. Many studies have focused on congestion measurement by means of data envelopment analysis (DEA). However, most of the previous investigations only considered the framework of desirable outputs. In fact, firms in the real world unavoidably generate undesirable outputs (such as pollutants or wastes) along with desirable outputs. Therefore, a new scheme is required for measuring congestion in the simultaneous presence of both desirable and undesirable outputs. This paper develops a nonradial efficiency measure for including undesirable outputs into the environmental performance. Based on the proposed model, a new definition and a new approach are presented to deal with congestion in the simultaneous presence of desirable and undesirable outputs. Then, this paper uses the presented method to study the pollutants (waste gas emission and waste discharge) of 31 administrative regions of China. The finding indicates that 7 industries pay attention to the reduction of their pollutants accompanying improvement of their commercial targets. Consequently, they do not show congestion in any input.

scholarly journals Ecological Evaluation of Industrial Parks Using a Comprehensive DEA and Inverted-DEA Model

2020 ◽  
Vol 2020 ◽  
pp. 1-11
Author(s):  
Bingjiang Zhang ◽  
Jinling Guo ◽  
Zheng Wen ◽  
Zhaoyao Li ◽  
Ning Wang
Keyword(s):  
Data Envelopment Analysis ◽  
Data Envelopment ◽  
Undesirable Outputs ◽  
Discrimination Power ◽  
New Approach ◽  
Discrimination Ability ◽  
Industrial Parks ◽  
Overall Evaluation ◽  
Score Method ◽  
Desirable And Undesirable Outputs

Data envelopment analysis (DEA) and inverted data envelopment analysis (inverted-DEA) are used so that the desirable and undesirable outputs of decision-making units (DMUs) exist simultaneously. We developed a new approach based on the concept of utilizing both DEA and inverted-DEA to enhance the discrimination power of DMUs with undesirable outputs. DMUs are ranked by the Z-score method and classified based on the efficiency scores of DEA and inverted-DEA. Then, the characteristics of the DMUs are analyzed based on the classification result. This paper performs an efficiency evaluation of 21 industrial parks in China in 2017 using this new approach. The overall evaluation results indicate that the proposed new approach increases the discrimination ability in this empirical study.

scholarly journals Undesirable Outputs’ Presence in Centralized Resource Allocation Model

2014 ◽  
Vol 2014 ◽  
pp. 1-6 ◽  
Author(s):  
Ghasem Tohidi ◽  
Hamed Taherzadeh ◽  
Sara Hajiha
Keyword(s):  
Resource Allocation ◽  
Data Envelopment ◽  
Undesirable Outputs ◽  
Numerical Illustration ◽  
Allocation Model ◽  
Proposed Model ◽  
Dea Models ◽  
The Individual ◽  
Desirable And Undesirable Outputs ◽  
Theoretical Foundations

Data envelopment analysis (DEA) is a common nonparametric technique to measure the relative efficiency scores of the individual homogenous decision making units (DMUs). One aspect of the DEA literature has recently been introduced as a centralized resource allocation (CRA) which aims at optimizing the combined resource consumption by all DMUs in an organization rather than considering the consumption individually through DMUs. Conventional DEA models and CRA model have been basically formulated on desirable inputs and outputs. The objective of this paper is to present new CRA models to assess the overall efficiency of a system consisting of DMUs by using directional distance function when DMUs produce desirable and undesirable outputs. This paper initially reviewed a couple of DEA approaches for measuring the efficiency scores of DMUs when some outputs are undesirable. Then, based upon these theoretical foundations, we develop the CRA model when undesirable outputs are considered in the evaluation. Finally, we apply a short numerical illustration to show how our proposed model can be applied.

Relative Efficiency of Decision Making Units Producing Both Desirable and Undesirable Outputs: A Case of Textile Processing Units in Pakistan.

2011 ◽  
Vol 50 (4II) ◽  
pp. 685-698
Author(s):  
Samina Khalil
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Relative Efficiency ◽  
Value Added ◽  
Data Envelopment ◽  
Undesirable Outputs ◽  
Textile Processing ◽  
Decision Making Unit ◽  
Desirable And Undesirable Outputs ◽  
Decision Making Units

This paper aims at measuring the relative efficiency of the most polluting industry in terms of water pollution in Pakistan. The textile processing is country‘s leading sub sector in textile manufacturing with regard to value added production, export, employment, and foreign exchange earnings. The data envelopment analysis technique is employed to estimate the relative efficiency of decision making units that uses several inputs to produce desirable and undesirable outputs. The efficiency scores of all manufacturing units exhibit the environmental consciousness of few producers is which may be due to state regulations to control pollution but overall the situation is far from satisfactory. Effective measures and instruments are still needed to check the rising pollution levels in water resources discharged by textile processing industry of the country. JEL classification: L67, Q53 Keywords: Data Envelopment Analysis (DEA), Decision Making Unit (DMU), Relative Efficiency, Undesirable Output

A Common Set of Weights for Ranking Decision-Making Units with Undesirable Outputs: A Double Frontiers Data Envelopment Analysis Approach

2018 ◽  
Vol 35 (06) ◽  
pp. 1850039 ◽  
Author(s):  
Lei Chen ◽  
Fei-Mei Wu ◽  
Feng Feng ◽  
Fujun Lai ◽  
Ying-Ming Wang
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Optimal Solution ◽  
Data Envelopment ◽  
Undesirable Outputs ◽  
Discrimination Power ◽  
Efficiency Optimization ◽  
Common Set Of Weights ◽  
Desirable And Undesirable Outputs ◽  
Decision Making Units

Major drawbacks of the traditional data envelopment analysis (DEA) method include selecting optimal weights in a flexible manner, lacking adequate discrimination power for efficient decision-making units, and considering only desirable outputs. By introducing the concept of global efficiency optimization, this study proposed a double frontiers DEA approach with undesirable outputs to generate a common set of weights for evaluating all decision-making units from both the optimistic and pessimistic perspectives. For a unique optimal solution, compromise models for individual efficiency optimization were developed as a secondary goal. Finally, as an illustration, the models were applied to evaluate the energy efficiency of the Chinese regional economy. The results showed that the proposed approach could improve discrimination power and obtain a fair result in a case where both desirable and undesirable outputs exist.

scholarly journals Fuzzy data envelopment analysis in the presence of undesirable outputs with ideal points

2020 ◽  
Author(s):  
Ali Ebrahimnejad ◽  
Naser Amani
Keyword(s):  
Data Envelopment Analysis ◽  
Data Envelopment ◽  
Undesirable Outputs ◽  
New Approach ◽  
Novel Approach ◽  
Fuzzy Data Envelopment Analysis ◽  
Relative Closeness ◽  
Fuzzy Ideal ◽  
Ideal Points ◽  
Fuzzy Dea

Abstract Data envelopment analysis (DEA) is a prominent technique for evaluating relative efficiency of a set of entities called decision making units (DMUs) with homogeneous structures. In order to implement a comprehensive assessment, undesirable factors should be included in the efficiency analysis. The present study endeavors to propose a novel approach for solving DEA model in the presence of undesirable outputs in which all input/output data are represented by triangular fuzzy numbers. To this end, two virtual fuzzy DMUs called fuzzy ideal DMU (FIDMU) and fuzzy anti-ideal DMU (FADMU) are introduced into proposed fuzzy DEA framework. Then, a lexicographic approach is used to find the best and the worst fuzzy efficiencies of FIDMU and FADMU, respectively. Moreover, the resulting fuzzy efficiencies are used to measure the best and worst fuzzy relative efficiencies of DMUs to construct a fuzzy relative closeness index. To address the overall assessment, a new approach is proposed for ranking fuzzy relative closeness indexes based on which the DMUs are ranked. The developed framework greatly reduces the complexity of computation compared with commonly used existing methods in the literature. To validate the proposed methodology and proposed ranking method, a numerical example is illustrated and compared the results with an existing approach.

Evaluation of Supply Chain Efficiency Based on a Novel Network of Data Envelopment Analysis Model

2015 ◽  
Vol 25 (14) ◽  
pp. 1540036 ◽  
Author(s):  
Li Fang Fu ◽  
Jun Meng ◽  
Ying Liu
Keyword(s):  
Supply Chain ◽  
Data Envelopment Analysis ◽  
Decision Makers ◽  
Data Envelopment Analysis Model ◽  
Data Envelopment ◽  
Undesirable Outputs ◽  
Analysis Model ◽  
Multilayer Network ◽  
Supply Chain Efficiency ◽  
Proposed Model

Performance evaluation of supply chain (SC) is a vital topic in SC management and inherently complex problems with multilayered internal linkages and activities of multiple entities. Recently, various Network Data Envelopment Analysis (NDEA) models, which opened the “black box” of conventional DEA, were developed and applied to evaluate the complex SC with a multilayer network structure. However, most of them are input or output oriented models which cannot take into consideration the nonproportional changes of inputs and outputs simultaneously. This paper extends the Slack-based measure (SBM) model to a nonradial, nonoriented network model named as U-NSBM with the presence of undesirable outputs in the SC. A numerical example is presented to demonstrate the applicability of the model in quantifying the efficiency and ranking the supply chain performance. By comparing with the CCR and U-SBM models, it is shown that the proposed model has higher distinguishing ability and gives feasible solution in the presence of undesirable outputs. Meanwhile, it provides more insights for decision makers about the source of inefficiency as well as the guidance to improve the SC performance.

Detecting the multi-period performance and efficiency changes of systems with undesirable outputs

2018 ◽  
Vol 10 (03) ◽  
pp. 1850034
Author(s):  
Monireh Jahani Sayyad Noveiri ◽  
Sohrab Kordrostami ◽  
Alireza Amirteimoori
Keyword(s):  
Relative Efficiency ◽  
Weighted Average ◽  
Data Envelopment ◽  
Undesirable Outputs ◽  
Performance Of Systems ◽  
Overall Efficiency ◽  
Period System ◽  
Desirable And Undesirable Outputs ◽  
Period Performance ◽  
Decision Making Units

Data envelopment analysis (DEA) is a technique to evaluate the relative efficiency of a set of decision making units (DMUs) which is applicable in different systems such as engineering, ecology, and so forth. In real-world situations, there are instances in which production processes of systems must be analyzed in multiple periods while desirable and undesirable outputs are present; therefore, in the current paper, a DEA-based procedure is suggested to estimate the performance of systems with desirable and undesirable outputs over several periods of time. Actually, the overall and period efficiencies of DMUs in the presence of undesirable outputs are calculated by using the DEA technique. Different aspects of disposability, i.e., strong and weak, are considered for undesirable outputs. Moreover, the overall efficiency is indicated as a weighted average of the efficiencies of periods. Efficiency changes between two periods are also estimated. The proposed approach has been tested by a numerical example and applied to evaluate the efficiency of commercial transport industry in 17 countries. The findings show that efficiency scores and their changes between periods might alter by incorporating undesirable outputs into the multi-period system under evaluation; consequently, the proposed approach obtains more rational and accurate results when undesirable outputs are present.

Slacks-Based Efficiency Measurements with Undesirable Outputs in Data Envelopment Analysis

2014 ◽  
Vol 16 (04) ◽  
pp. 1005-1021 ◽  
Author(s):  
Jie Wu ◽  
Xiang Lu ◽  
Dong Guo ◽  
Liang Liang
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Production Process ◽  
Environmental Performance ◽  
Decision Makers ◽  
European Countries ◽  
Data Envelopment ◽  
Undesirable Outputs ◽  
Theoretical Justification ◽  
Decision Making Units

Data envelopment analysis (DEA) has recently gained great popularity in modeling environmental performance because it provides condensed information to decision makers when the production process includes undesirable outputs. In this paper, we develop a new slacks-based efficiency measurement for modeling environmental performance using the environmental DEA technology. The proposed index has more theoretical justification, and distinguishes among different decision making units (DMUs) better in practice. Then we further extend it to the nonoriented index with double aim of increasing desirable outputs and reducing undesirable outputs. Finally, we calculate the index for each of 25 OECD European countries in a model of CO2 emission performance from 2007 to 2009 and the results obtained are presented.

Environment Performance Evaluation Under Emission Quota Constraint

2014 ◽  
Vol 13 (04) ◽  
pp. 779-794 ◽  
Author(s):  
Gongbing Bi ◽  
Yan Luo ◽  
Shaofu Du
Keyword(s):  
Performance Evaluation ◽  
Data Envelopment Analysis ◽  
Environmental Performance ◽  
Pollution Abatement ◽  
Efficiency Analysis ◽  
Data Envelopment ◽  
Proposed Model ◽  
Emission Quota ◽  
The Government ◽  
Environment Performance

The primary purpose of our paper is to evaluate environmental performance as well as to model some nonseparable inputs and outputs using the data envelopment analysis (DEA) model. The efficiency analysis takes emission quota into consideration with the objectives of minimizing both total undesirable emissions and consumption of input resources. The value of emission quota that directly influences the environmental performance is obtained. The proposed model is applied to the data of power industries in 30 Chinese provinces. In addition, the sensitivity of the efficiency with respect to the value of emission quota is investigated. The results show the environmental protection in the power industry can be further improved. Our conclusion is that strict environmental regulations often enhance economic development rather than hinder it. This strongly suggests the government needs to pay more attention to pollution abatement because of its promoting effects on environmental performance.

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