An Approach for Generating Weights Using the Pairwise Comparison Matrix

Data envelopment analysis (DEA) has been used for obtaining weights for the analytic hierarchy process (AHP), an approach known as DEAHP. This method sometimes identifies more than one decision criterion or alternative as DEAHP-efficient. To overcome this problem, this paper proposes a new approach that not only generates appropriate weights for the decision criteria or alternatives, but also differentiates between DEAHP-efficient decision criteria or alternatives. To this end, we propose a DEA model with an assurance region and a cross-weight model that prioritizes decision criteria or alternatives by considering their most unfavorable weights. Two numerical examples are also provided to illustrate the advantages and potential applications of the proposed model.

Bounded and discrete data in data envelopment analysis with assurance regions

Purpose The purpose of this paper is to evaluate design performance of 51 gear shaping machines by using data envelopment analysis (DEA). Design/methodology/approach Existing studies extend traditional DEA by handling bounded and discrete data based on envelopment models. However, value judgment is usually neglected and fail to be incorporated in these envelopment models. In many cases, there is a need for prior preferences. Using existing DEA approaches as a backdrop, the current paper presents a methodology for incorporating assurance region (AR) restrictions into DEA with bounded and discrete data, i.e. the assurance region bounded discrete (AR-BD) DEA model. Then, the AR-BD DEA model is combined with a context-dependent DEA to obtain an efficiency stratification. Findings The authors examine different AR restrictions and calculate efficiency scores of five scenarios of AR restrictions by using the proposed AR-BD DEA model. It shows that AR restrictions have a great impact on the efficiency scores. The authors also identify nine efficient frontiers in total. For each decision-making unit, it could set benchmarks and improve its performance based on each higher efficient frontier. Originality/value This paper first evaluates efficiency of gear shaping machines by considering different (bounded and discrete) variable types of data and including AR restrictions. The AR-BD DEA model and context-dependent AR-BD DEA model proposed in this paper further enrich the DEA theory. The findings in this paper certainly provide useful information for both producers and consumers to make smart decisions.

An integrated data envelopment approach for evaluating the meat companies efficiency

The purpose of this study is to apply the assurance region (AR) concept to restrict the range of input-output weights with expert opinions in the data envelopment approach (DEA). Opinions from 34 experts were collected by a questionnaire in order to rank the importance of cost and revenue sources and measure the influence of business factors with the fuzzy analytic hierarchy process (FAHP). This article suggests that a DEA with AR specification in variable weights can present realistic results to measure and rank the performance of twenty meat auction companies (MAC) in Taiwan. We categorise MACs into four groups by decomposing their two revenue sources with auction and slaughter priority and recommend the managerial strategies for each group to improve operational efficiency. This consideration is more critical for small samples or industries that are close to the spatial competitive market structure.<br />

THE EFFECTIVENESS OF FACEBOOK PROMOTING THE BRANDS OF SLOVAK WELLNESS HOTELS BASED ON THE DEA METHODOLOGY

This contribution presents an evaluation of the effectiveness of the Facebook social network promoting the brands of a number of selected Slovak wellness hotels based on the DEA (Data Envelopment Analysis) methodology and its selected models. The research question is that hotel guests use the funpages of the Slovak wellness hotels on the Facebook social network to learn more about its services and also how the Slovak wellness hotels use their funpages to promote their brand and communicate with their consumers. During the four months in 2018 (September – December), data on input and output variables was collected, with data from photos, videos and links to "funpage" hotels on Facebook and output to "Likes" and "Comments". The measurement of the efficiency of these input and output variables in order to assess the effectiveness of 16 wellness hotel brands operating in the Slovak Republic was based on an input-oriented CCR DEA model with weight adjustment via the Assurance Region. The number of Likes and comments on the Facebook pages of the 16 Slovak wellness hotels suggests that hotel guests use Facebook to learn more about the services and events they provide. The DEA model is therefore an effective tool to help evaluate the effectiveness of a business in a hotel sector on a social network, such as Facebook, in promoting its brands, as it uses multiple variables and does not necessarily require an input-output relationship. The results of using this method confirmed the research question.

A hybrid AHP/DEA-AR model for measuring and comparing the efficiency of airports

PurposeThe purpose of this paper is to employ an efficiency analysis and compare the efficiency scores of publicly or privately operated airports in Turkey.Design/methodology/approachThis study uses analytic hierarchy process, which is one of the widely known multi-criteria decision-making methods to calculate the relative weights of input and outputs. This study also uses data envelopment analysis and assurance region (AR) method to calculate the efficiency scores of airports at the empirical analysis stage.FindingsThe empirical results reveal that DEA-BCC and DEA-CCR methods produced almost the same efficiency scores, and 14 airports were found as efficient. Also, AR method was employed and under this method, it was only two airports operated by the private sector that were found as efficient. None of the publicly operated airports was found as efficient.Practical implicationsThe main practical implication of this study is that publicly operated airports must improve their efficiency levels in Turkey. This situation indicates that the government policy for the aviation sector must be changed. It is not a coincidence that all publicly operated airports are inefficient. To cope with this situation, it may be a useful policy that establishes a regional airport system or applies the privatization process to all airports.Originality/valueThe most significant contribution of this study to literature is that the AR method, which was never used before in a single country’s airport performance evaluation study, was applied for the first time. Also, this technique was applied first time to Turkish airports for measuring their efficiency levels.

Incorporating managed preferences in the evaluation of public organizations efficiency: a DEA approach

Classical Data Envelopment Analysis (DEA) models have often been used to evaluate the public organizations effectiveness. However, such models, by ignoring the managers preferences, can classify as efficient organizations that, in fact, are not. Based on this motivation, the objective of this paper was to evaluate, through a DEA model that incorporates managerial preferences, the efficiency of the 25 superintendencies of the National Department of Mineral Production (DNPM), an autarchy linked to the Ministry of Mines and Energy. For this purpose, the number of servers in the middle and end areas and, as outputs, the number of mining titles granted in 2016 was considered as input. Manager preferences regarding outputs were incorporated into classical DEA models using the assurance region method. The results showed that when management preferences were incorporated into classic DEA models, the DNPM superintendencies number that showed maximum operational efficiency was reduced from eight to five. For superintendencies classified as inefficient, the benchmarks and performance targets were identified, which is useful, since they can support the action planning aimed at reducing the high liabilities pending processes for analysis by the municipality. This would reduce DNPM's slowness in granting mining bonds, which would stimulate investments in the mineral sector, which is of paramount importance to the Brazilian economy. It should be emphasized that the methods used in this research can be applied in the evaluation of the organizations efficiency whose managers have different preferences on inputs and outputs.

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

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.

Regional hotel performance and benchmarking in the Pearl River Delta

Purpose This study models cost-efficiency against revenue for hotels in the Pearl River Delta (PRD) – in Guangzhou, Hong Kong and Macau – by considering regional differences and weight restrictions on revenue output. Design/methodology/approach The authors modified and applied a context-dependent assurance region data envelopment analysis (CAR-DEA) model in assessing the performance of 41 hotels in the PRD. The model considers the relationships among output variables and sets the revenue composition of the hotels as weight restrictions in accounting for the relative importance of different revenue sources. Findings When assessing the 41 hotels all together, those in Guangzhou outperformed the hotels in other two cities by showing better pure technical efficiency (PTE), while those in Macau had the best scale efficiency (SE). When the assurance region (AR) restriction was imposed, the hotels in Macau outperformed those in the other two cities by showing better SE. When considering regional differences, the Macau hotels ranked first in terms of both the average efficiency score and the overall ranking. All the sample hotels in Guangzhou and half of the sample hotels in Hong Kong and Macau exhibited increasing, constant and decreasing returns to scale. Research limitations/implications The research results are limited by data quality and the variables included in the models. Practical implications The study helps hotel practitioners in the PRD better assess their cost-efficiency performance by considering regional differences and operational parameters so as to strategically improve their performance. Originality/value This study improves upon previous hotel efficiency studies by considering the influence of different operational parameters across different localities. It can be extended to examine the performance of different calibers of hotels, restaurants or tourism entities located in various localities and possessing different operational characteristics.