scholarly journals MEASURING THE EFFICIENCY OF BANKS: THE BOOTSTRAPPED I-DISTANCE GAR DEA APPROACH

2018 ◽  
Vol 24 (4) ◽  
pp. 1581-1605 ◽  
Author(s):  
Milan Radojicic ◽  
Gordana Savic ◽  
Veljko Jeremic
Keyword(s):  
Decision Making ◽  
Banking Sector ◽  
Data Envelopment ◽  
Eastern European ◽  
Weight Restrictions ◽  
Average Efficiency ◽  
Assurance Region ◽  
Depth Analysis ◽  
European Banks ◽  
The Impact

The efficiency of the banking sector, particularly in developing countries, has captivated the attention of various researchers. Contributing to this issue, we present the results of in-depth analysis of the efficiency of Serbian banks during the period 2005–2016. Unlike previous papers evaluating the efficiency of South-Eastern European banks, we emphasize the importance of applying weight restrictions in Data Envelopment Analysis (DEA). The aim is to incorporate every aspect of a decision-making unit’s performance to avoid misevaluation of a bank’s efficiency. As a possible remedy to the issue, a bootstrapped I-distance is suggested as a statistically sound framework for determining weight bounds in the Global Assurance Region (GAR) DEA model. In terms of average efficiency, the banking sector of Serbia exhibits an improving trend over the period analyzed. The results show how banks can be evaluated when the impact of all the operating inputs and outputs are properly factored into the study.

A New Look at Selecting Third-Party Reverse Logistics Providers

2012 ◽  
pp. 246-254
Author(s):  
Reza Farzipoor Saen
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Reverse Logistics ◽  
Third Party ◽  
Data Envelopment ◽  
Weight Restrictions ◽  
Use Of Data ◽  
Available Information ◽  
Nondiscretionary Factors ◽  
Decision Making Criteria

The use of Data Envelopment Analysis (DEA) in many fields is based on total flexibility of the weights. However, the problem of allowing total flexibility of the weights is that the values of the weights obtained by solving the unrestricted DEA program are often in contradiction to prior views or additional available information. Also, many applications of DEA assume complete discretionary of decision making criteria. However, they do not assume the conditions that some factors are nondiscretionary. To select the most efficient third-party reverse logistics (3PL) provider in the conditions that both weight restrictions and nondiscretionary factors are present, a methodology is introduced. A numerical example demonstrates the application of the proposed method.

scholarly journals Using Data Envelopment Analysis and Multi-Criteria Decision-Making Methods to Evaluate Teacher Performance in Higher Education

Symmetry ◽  
2020 ◽  
Vol 12 (4) ◽  
pp. 563 ◽  
Author(s):  
Milena Popović ◽  
Gordana Savić ◽  
Marija Kuzmanović ◽  
Milan Martić
Keyword(s):  
Higher Education ◽  
Decision Making ◽  
Data Envelopment Analysis ◽  
Conjoint Analysis ◽  
Data Envelopment ◽  
Efficiency Evaluation ◽  
Multi Criteria Decision Making ◽  
Weight Restrictions ◽  
Analytic Hierarchy ◽  
Discrimination Power

This paper proposes an approach that combines data envelopment analysis (DEA) with the analytic hierarchy process (AHP) and conjoint analysis, as multi-criteria decision-making methods to evaluate teachers’ performance in higher education. This process of evaluation is complex as it involves consideration of both objective and subjective efficiency assessments. The efficiency evaluation in the presence of multiple different criteria is done by DEA and results heavily depend on their selection, values, and the weights assigned to them. Objective efficiency evaluation is data-driven, while the subjective efficiency relies on values of subjective criteria usually captured throughout the survey. The conjoint analysis helps with the selection and determining the relative importance of such criteria, based on stakeholder preferences, obtained as an evaluation of experimentally designed hypothetical profiles. An efficient experimental design can be either symmetric or asymmetric depending on the structure of criteria covered by the study. Obtained importance might be a guideline for selecting adequate input and output criteria in the DEA model when assessing teachers’ subjective efficiency. Another reason to use conjoint preferences is to set a basis for weight restrictions in DEA and consequently to increase its discrimination power. Finally, the overall teacher’s efficiency is an AHP aggregation of subjective and objective teaching and research efficiency scores. Given the growing competition in the field of education, a higher level of responsibility and commitment is expected, and it is therefore helpful to identify weaknesses so that they can be addressed. Therefore, the evaluation of teachers’ efficiency at the University of Belgrade, Faculty of Organizational Sciences illustrates the usage of the proposed approach. As results, relatively efficient and inefficient teachers were identified, the reasons and aspects of their inefficiency were discovered, and rankings were made.

Fuzzy C-means based data envelopment analysis for mitigating the impact of units’ heterogeneity

Kybernetes ◽  
2016 ◽  
Vol 45 (3) ◽  
pp. 536-551 ◽  
Author(s):  
Seyed Hossein Razavi Hajiagha ◽  
Shide Sadat Hashemi ◽  
Hannan Amoozad Mahdiraji
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Negative Impact ◽  
Positive Impact ◽  
Efficiency Score ◽  
Data Envelopment ◽  
Content Type ◽  
Fuzzy C Means ◽  
The Impact ◽  
Decision Making Units

Purpose – Data envelopment analysis (DEA) is a non-parametric model that is developed for evaluating the relative efficiency of a set of homogeneous decision-making units that each unit transforms multiple inputs into multiple outputs. However, usually the decision-making units are not completely similar. The purpose of this paper is to propose an algorithm for DEA applications when considered DMUs are non-homogeneous. Design/methodology/approach – To reach this aim, an algorithm is designed to mitigate the impact of heterogeneity on efficiency evaluation. Using fuzzy C-means algorithm, a fuzzy clustering is obtained for DMUs based on their inputs and outputs. Then, the fuzzy C-means based DEA approach is used for finding the efficiency of DMUs in different clusters. Finally, the different efficiencies of each DMU are aggregated based on the membership values of DMUs in clusters. Findings – Heterogeneity causes some positive impact on some DMUs while it has negative impact on other ones. The proposed method mitigates this undesirable impact and a different distribution of efficiency score is obtained that neglects this unintended impacts. Research limitations/implications – The proposed method can be applied in DEA applications with a large number of DMUs in different situations, where some of them enjoyed the good environmental conditions, while others suffered from bad conditions. Therefore, a better assessment of real performance can be obtained. Originality/value – The paper proposed a hybrid algorithm combination of fuzzy C-means clustering method with classic DEA models for the first time.

scholarly journals Entertainment Cost Efficiency Analysis With Data Envelopment Analysis (Dea) And Fuzzy Logic (Flp & C-Iowa) Approach To Sales Level

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
Dwi Kakung Saputro ◽  
Tedjo Sukmono
Keyword(s):  
Operating System ◽  
Decision Making ◽  
Cost Efficiency ◽  
Efficiency Analysis ◽  
Data Envelopment ◽  
Marketing Department ◽  
Objective Value ◽  
Costing System ◽  
The Impact ◽  
Total Sales

It caused some problems regarding to calculation and measurement of costs which is issued for the level of efficiency desired by the company, namely PT. LLL Surabaya. From the results of measurements and analysis, it shows that system has objective value in “efficient” category. Therefore, the ranking results of regional operating system (DMU3) are the most optimal in terms of sales capacity, which is Rp. 11,745,050,779. It is caused by the impact of providing these costs. Based on the decision-making preferences related to the entertainment costing system, (CI) value is 0.18 for (P1) and 0.03 for (P2). It means that marketing department has more preference for entertainment costing system should be given constantly with the aim that total sales capacity can continue to increase.

A Study on Impact on the Service Quality and Customer Satisfaction of SBI in Tirunelveli District

2019 ◽  
Vol 118 (10) ◽  
pp. 298-306
Author(s):  
Dr.(Smt)N.Kamala ◽  
Smt. S.Arumuga Selvi ◽  
M. Chandra ◽  
Smt.M. Maheswari
Keyword(s):  
Decision Making ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Sector ◽  
Decision Making Process ◽  
Business Survival ◽  
The Impact ◽  
The Relationship

Now days in the banking sector experts have to pay special attention to the service quality because it will decide the customer decision making process, but also it will make some changes in the customer satisfaction, purchase retention, loyalty and business survival. It may be shown in many researches. The main objective of this paper is to review the relationship between service quality and customer satisfaction. The research will help to understand the impact on the service quality and customer satisfaction.

Determinants of Efficiency in the Malaysian Banking Sector: Evidence from Semi-parametric Data Envelopment Analysis Method

2016 ◽  
Vol 4 (2) ◽  
pp. 151-172 ◽  
Author(s):  
Fadzlan Sufian
Keyword(s):  
Data Envelopment Analysis ◽  
Banking Sector ◽  
Productive Efficiency ◽  
Data Envelopment ◽  
Panel Regression ◽  
Analysis Method ◽  
Bank Efficiency ◽  
Panel Regressions ◽  
Parametric Data ◽  
The Impact

This article follows Simar and Wilson’s (2007 , Journal of Econometrics, 136(1), 31–64) two-stage procedure to analyse the efficiency of the Malaysian banking sector. In the first stage, we employ the data envelopment analysis (DEA) method to compute the efficiency of individual banks during the period 1999–2008. We then use panel regressions to examine the impact of ownership on bank efficiency while controlling for the potential impacts of contextual variables. The DEA results indicate an increase in efficiency over the sample period. The results from the panel regression suggest that productive efficiency is positively related to bank size, capitalization and foreign ownership. On the other hand, the publicly listed and government-owned banks have been relatively inefficient in their intermediation function.

Integrated data envelopment analysis and multicriteria decision-making ranking approach based on peer-evaluations and subjective preferences: case study in banking sector

2020 ◽  
Vol 54 (4) ◽  
pp. 551-582
Author(s):  
Jolly Puri ◽  
Meenu Verma
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Decision Maker ◽  
Multicriteria Decision Making ◽  
Peer Evaluation ◽  
Data Envelopment ◽  
Content Type ◽  
Multicriteria Decision ◽  
Subjective Preference ◽  
The Impact

PurposeThis paper is focused on developing an integrated algorithmic approach named as data envelopment analysis and multicriteria decision-making (DEA-MCDM) for ranking decision-making units (DMUs) based on cross-efficiency technique and subjective preference(s) of the decision maker.Design/methodology/approachSelf-evaluation in data envelopment analysis (DEA) lacks in discrimination power among DMUs. To fix this, a cross-efficiency technique has been introduced that ranks DMUs based on peer-evaluation. Different cross-efficiency formulations such as aggressive and benevolent and neutral are available in the literature. The existing ranking approaches fail to incorporate subjective preference of “one” or “some” or “all” or “most” of the cross-efficiency evaluation formulations. Therefore, the integrated framework in this paper, based on DEA and multicriteria decision-making (MCDM), aims to present a ranking approach to incorporate different cross-efficiency formulations as well as subjective preference(s) of decision maker.FindingsThe proposed approach has an advantage that each of the aggressive, benevolent and neutral cross-efficiency formulations contribute to select the best alternative among the DMUs in a MCDM problem. Ordered weighted averaging (OWA) aggregation is applied to aggregate final cross-efficiencies and to achieve complete ranking of the DMUs. This new approach is further illustrated and compared with existing MCDM approaches like simple additive weighting (SAW) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) to prove its validity in real situations.Research limitations/implicationsThe choice of cross-efficiency formulation(s) as per subjective preference of the decision maker and different orness levels lead to different aggregated scores and thus ranking of the DMUs accordingly. The proposed ranking approach is highly useful in real applications like R and D projects, flexible manufacturing systems, electricity distribution sector, banking industry, labor assignment and the economic environmental performances for ranking and benchmarking.Practical implicationsTo prove the practical applicability and robustness of the proposed integrated DEA-MCDM approach, it is applied to top twelve Indian banks in terms of three inputs and two outputs for the period 2018–2019. The findings of the study (1) ensure the impact of non-performing assets (NPAs) on the ranking of the selected banks and (2) are enormously valuable for the bank experts and policy makers to consider the impact of peer-evaluation and subjective preference(s) in formulating appropriate policies to improve performance and ranks of underperformed banks in competitive scenario.Originality/valueTo the best of the authors’ knowledge, this is the first study that has integrated both DEA and MCDM via OWA aggregation to present a ranking approach that can incorporate different cross-efficiency formulations and subjective preference(s) of the decision maker for ranking DMUs.

scholarly journals Development of interaction model for air traffic controllers and pilots using discrete mathematics methods

2020 ◽  
Vol 23 (4) ◽  
pp. 72-83
Author(s):  
A. I. Stepnova ◽  
V. I. Kochergin ◽  
S. M. Stepanov ◽  
V. A. Borsoev
Keyword(s):  
Decision Making ◽  
Interaction Model ◽  
Air Traffic ◽  
Service Planning ◽  
Simulator Training ◽  
Discrete Mathematics ◽  
Air Traffic Controllers ◽  
Depth Analysis ◽  
The Impact ◽  
The Ideal

The purpose of the article is to create a database of errors and to develop an algorithm for a situational decision-making model taking into account availability of potential errors of air traffic controllers and pilots. Air traffic controllers and pilots typical errors were compiled and analyzed, arrays of specialists errors were created, binary error relations based on methods of discrete mathematics were also compiled in this article. This decision is caused by the need to formalize the interaction of specialists, since each error of the air traffic controller can be compared with a certain set of pilot errors and vice versa. In case of further in-depth analysis, it is possible to expand the database by adding additional errors arrays of the adjacent point controller, aerodrome service, planning service, etc. The goal is formed after analyzing the features of simulator training in higher educational institutions. The peculiarity is the absence of hazardous factors during the simulator training. This training takes place according to the ideal model. Undoubtedly, this approach is aimed at developing the correct algorithm of actions in normal or abnormal flight conditions, but thus the trainee can’t work out the decision-making skills if there is an error in the ideal algorithm. At the same time, existing specialists face unintended errors every working day, so having experience in this field plays an important role in minimizing the impact of the human factor on flight safety. In our case, it is proposed to include such a dangerous factor as an unintentional error in the joint training program for air traffic controllers and pilots, which will improve the training quality of specialists.

scholarly journals An Evaluation of the Technical Efficiency of the Selected Commercial Banks with the Usage of the CCR-DEA Model under the Conditions of Acquisitions in the Banking Sector

2020 ◽  
Vol 54 (1) ◽  
pp. 77
Author(s):  
Anna Pyka
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Linear Form ◽  
Commercial Banks ◽  
Banking Sector ◽  
Data Envelopment ◽  
Dea Model ◽  
The Impact ◽  
Ccr Model

<p>The aim of this article is to evaluate the technical efficiency of the chosen commercial banks, which in the years 2014–2016 were participants in acquisitions in the banking sector, with the usage of the Data Envelopment Analysis (DEA) model. The DEA model was modified through reshaping the linear form using the Charnes, Cooper, and Rhodes (CCR) model, which is aimed at expenditures. Particular attention was paid to the impact of acquisitions in the banking sector on the improvement or deterioration of the technical efficiency of banks that act as acquiring banks.</p>

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