scholarly journals Efficiency Bounds for Two-Stage Production Systems

2018 ◽  
Vol 2018 ◽  
pp. 1-9 ◽  
Author(s):  
Xiao Shi
Keyword(s):  
Production Systems ◽  
Efficiency Score ◽  
Insurance Companies ◽  
Practical Case ◽  
Data Envelopment ◽  
Production Structure ◽  
Two Stage ◽  
Decision Making Unit ◽  
Real World Applications ◽  
Dea Models

Traditional data envelopment analysis (DEA) models find the most desirable weights for each decision-making unit (DMU) in order to estimate the highest efficiency score as possible. These efficiency scores are then used for ranking the DMUs. The main drawback is that the efficiency scores based on weights obtained from the standard DEA models ignore other feasible weights; this is due to the fact that DEA may have multiple solutions for each DMU. To overcome this problem, Salo and Punkka (2011) deemed each DMU as a “Black Box” and developed models to obtain the efficiency bounds for each DMU over sets of all its feasible weights. In many real world applications, there are DMUs that have a two-stage production system. In this paper, we extend the Salo and Punkka’s (2011) model to a more common and practical case considering the two-stage production structure. The proposed approach calculates each DMU’s efficiency bounds for the overall system as well as efficiency bounds for each subsystem/substage. An application for nonlife insurance companies has been discussed to illustrate the applicability of the proposed approach and show the usefulness of this method.

Economies of scope in two-stage production systems: A data envelopment analysis approach

2018 ◽  
Vol 52 (2) ◽  
pp. 335-349 ◽  
Author(s):  
Leila Zeinalzadeh Ahranjani ◽  
Reza Kazemi Matin ◽  
Reza Farzipoor Saen
Keyword(s):  
Data Envelopment Analysis ◽  
Production Systems ◽  
Efficiency Score ◽  
Joint Production ◽  
Economies Of Scope ◽  
Data Envelopment ◽  
Two Stage ◽  
Network Dea ◽  
Second Stage ◽  
Dea Models

Traditional data envelopment analysis (DEA) models consider a production system as a black-box without taking into consideration its internal linked activities. In recent years, a number of DEA studies have been presented to estimate efficiency score of two-stage network production systems in which all outputs of the first stage (intermediate products) are used as inputs of the second stage to produce final outputs. This paper aims to develop a two-stage network DEA model to study economic notion of economies of scope (ES) between two products. It intends to determine profitability of joint production of two products by one firm. Numerical illustrations are presented to show applicability of proposed methods.

scholarly journals Centralized resource allocation with the possibility of downsizing in two-stage network production systems

2021 ◽  
Author(s):  
Amir Hossein Yadollahi ◽  
Reza Kazemi Matin
Keyword(s):  
Resource Allocation ◽  
Resource Constraints ◽  
Production Systems ◽  
Data Envelopment ◽  
Two Stage ◽  
New Approach ◽  
Organizational Perspective ◽  
Dea Models ◽  
Common Resource ◽  
Component Processes

The network data envelopment analysis (NDEA) technique has been recently developed to measure the relative efficiency of complex production systems. NDEA models provide more meaningful and informative results in comparison to the conventional black-box DEA approach that ignores the operations of the component processes. Regarding the centralized decision-making systems, normal management imposes common resource constraints to maximize produced outputs and minimize consumed inputs. The present study seeks to introduce new centralized resource allocation models in two-stage network production systems. This intra-organizational perspective also provides the possibility of closing down some of the existing units to improve system efficiency. To do so, three scenarios of centralized DEA models are introduced to take advantage of this possibility. A simple numerical example is used for illustration purposes. An empirical application of the proposed approach to the twenty branches of a university is also presented to show the applicability of the new approach.

A slacks-based measure approach for efficiency decomposition in multi-period two-stage systems

2020 ◽  
Vol 54 (6) ◽  
pp. 1657-1671
Author(s):  
Samaneh Esfidani ◽  
Farhad Hosseinzadeh Lotfi ◽  
Shabnam Razavyan ◽  
Ali Ebrahimnejad
Keyword(s):  
Production Systems ◽  
Weighted Average ◽  
Real Data ◽  
Stage Structure ◽  
Data Envelopment ◽  
Two Stage ◽  
Bank Branches ◽  
Proposed Model ◽  
Efficiency Decomposition ◽  
Dea Models

Two-stage production systems are often encountered in many real applications where the production process is divided into two processes. In contrast to the conventional data envelopment analysis (DEA) models, two-stage DEA models take the operations of the internal processes into account. A number of studies have used two-stage DEA models in order to evaluate the performance of decision making units (DMUs) having a network structure. In this paper, we use a non-radial DEA model called the network slacks-based measure (NSBM) model to measure the efficiency of a system with a multi-period two-stage structure. Then we describe the properties of the proposed model in details. Moreover, we shall decompose the overall efficiency of the system over a number of time periods as a weighted average of the efficiency in each period. The efficiency of the stages, in respect to the entire periods shall be decomposed in terms of the weighted average efficiency of the stages in each period. Finally, the real data of Mellat bank branches in Tehran extracted from extant literature is used to illustrate the proposed approach.

scholarly journals Group ranking of two-stage production units in network data envelopment analysis

2021 ◽  
Author(s):  
Mohammad Sajjad Shahbazifar ◽  
Reza Kazemi Matin ◽  
Mohsen Khounsiavash ◽  
Fereshteh Koushki
Keyword(s):  
Data Envelopment Analysis ◽  
Group Performance ◽  
Production Systems ◽  
Performance Criteria ◽  
Data Envelopment ◽  
Mathematical Tool ◽  
Two Stage ◽  
Group Ranking ◽  
Group Efficiency ◽  
Dea Models

Data envelopment analysis (DEA) is a useful mathematical tool for evaluating the performance of production units and ranking their relative efficiency. In many real-world applications, production units belong to several separate groups and also consist of several sub-units. In this paper, we introduce a new method of evaluating group efficiency of two-stage production systems. To this end, some new DEA models are introduced for evaluating and ranking groups of production systems based on the average and weakest group performance criteria. Some numerical examples, including an empirical application in the banking industry, are also provided for illustration.

scholarly journals Network DEA based on DEA-ratio

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Dariush Akbarian
Keyword(s):  
Insurance Companies ◽  
Data Envelopment ◽  
Validity And Reliability ◽  
Two Stage ◽  
Network Dea ◽  
Black Boxes ◽  
Internal Structures ◽  
Dea Models ◽  
Tchebycheff Norm ◽  
Special Case

AbstractData 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.

scholarly journals The Theoretical Relationship between the CCR Model and the Two-Stage DEA Model with an Application in the Efficiency Analysis of the Financial Industry

Symmetry ◽  
2020 ◽  
Vol 12 (5) ◽  
pp. 712
Author(s):  
Ming-Chi Tsai ◽  
Ching-Hsue Cheng ◽  
Van Trung Nguyen ◽  
Meei-Ing Tsai
Keyword(s):  
Insurance Companies ◽  
Data Envelopment ◽  
Financial Industry ◽  
Two Stage ◽  
Theoretical Relationship ◽  
Dea Model ◽  
Bank Branches ◽  
Dea Models ◽  
The Relationship ◽  
Ccr Model

Since Charnes, Cooper, and Rhodes introduced data envelopment analysis (DEA) in 1978, later called the DEA-CCR model, many studies applied this technique to different fields. Based on the original CCR model, many modified DEA models were developed by researchers. Since 1999, Seiford and Zhu presented a two-stage DEA model. Later, these models were widely used in many studies. However, the relationship between the efficiency scores that are obtained from the original CCR model and the two-stage DEA model remains unknown. To fill this gap, this study proposed a theoretical relationship between the efficiency scores that are calculated from the two-stage DEA model and those that are obtained from the original CCR model. How the sets of nonsymmetrical weights affected the efficiency scores were also investigated. Theorems regarding the relationship were developed, and then the model was utilized to evaluate the two-stage efficiency scores of the insurance companies (non-life) and bank branches. The results show that using a two-stage DEA model can get more information about operational efficiency than the traditional CCR model does. The findings from this study about the two-stage DEA technique can provide significant reasons for using this model to evaluate performance efficiency.

scholarly journals Relative Technical Efficiency of Life Insurance Companies DEA and Interval DEA Methods

2020 ◽  
Vol 8 (4S5) ◽  
pp. 101-105
Keyword(s):  
Decision Making ◽  
Life Insurance ◽  
Relative Efficiency ◽  
Interval Data ◽  
Vital Role ◽  
Insurance Companies ◽  
Data Envelopment ◽  
Parametric Linear Programming ◽  
Decision Making Unit ◽  
Dea Models

Insurance industries in India have taken a huge shape especially after privatization and introduction of Insurance Regulatory & Development Authority (IRDA). It plays an vital role in the growth of financial sector in all developed and developing countries. Insurance may be a sort of risk management and primarily used hedge against the danger of a contingent or uncertain loss. In this paper the author analyses the relative efficiency of life insurance companies in India using DEA and Interval Data Envelopment Approach (Interval DEA). DEA is a non parametric linear programming problem used for measuring the relative efficiency of decision making units (DMU) which utilize several identical inputs to produce a set of identical outputs. Interval DEA model is used in efficiency measurement of the life insurance companies under imprecise inputs and outputs. The empirical results of the conventional DEA models and Interval DEA models are computed to trace the performance of decision making unit at a possibility level.

Performance evaluation of general network production processes with undesirable outputs: A DEA approach

2018 ◽  
Vol 52 (1) ◽  
pp. 17-34 ◽  
Author(s):  
Amir Kalhor ◽  
Reza Kazemi Matin
Keyword(s):  
Performance Evaluation ◽  
Production Systems ◽  
Data Envelopment ◽  
Undesirable Outputs ◽  
Network Dea ◽  
Production Processes ◽  
Real World Applications ◽  
Dea Models ◽  
General Network ◽  
Literature Production

Performance evaluation of production systems with network structure has been widely studied in recent data envelopment analysis (DEA) literature. Production systems in which outputs of some stages are consumed as the inputs of some other stages in producing final outputs. In real world applications, production processes are often complex and may produce not only desirable but also undesirable intermediate or final outputs. In this paper modelling a general network DEA is considered in the presence of undesirable outputs. A weak disposable production set consistent with undesirable outputs is introduced and some network DEA models are also proposed for performance evaluation of the production units. The proposed method is illustrated by some numerical example, including an empirical application.

Shareholder activism impact on efficiency in Brazil

2019 ◽  
Vol 19 (1) ◽  
pp. 141-157 ◽  
Author(s):  
Paula Guimaraes ◽  
Ricardo P.C. Leal ◽  
Peter Wanke ◽  
Matthew Morey
Keyword(s):  
Shareholder Activism ◽  
Efficiency Score ◽  
Data Envelopment ◽  
Truncated Regression ◽  
Two Stage ◽  
Content Type ◽  
Financial Characteristics ◽  
Long Term Impact ◽  
A Company

Purpose This paper aims to investigate the long-term impact of shareholder activism on Brazilian listed companies. Design/methodology/approach This study uses a sample of 194 companies in 2010, 2012 and 2014 and a two-stage data envelopment analysis to generate an efficiency score based on corporate governance, ownership structure and financial characteristics of companies. In the second stage, the study applies a bootstrap truncated regression to identify whether there is a relationship between the efficiency scores and a company-level activism index. Findings The results show a negative correlation between the efficiency scores and the activism index, suggesting that activist shareholders tend to target less efficient companies. A time analysis over the period 2010-2014 does not offer evidence of impacts of activism on changes of the efficiency scores. Practical implications Activist shareholders target less efficient companies. Shareholder activism increased after regulation that facilitated shareholder voting and required greater company transparency was introduced. Originality/value The two-stage nature of the procedure used in the analysis ascertains that this result is not spurious, assuring data separability between productive resources and contextual variables. This study contributes to the scarce literature on activism in emerging markets.

Sign in / Sign up

Export Citation Format

Share Document