IDEAS home Printed from https://ideas.repec.org/a/eee/oprepe/v8y2021ics2214716021000075.html
   My bibliography  Save this article

A novel best worst method robust data envelopment analysis: Incorporating decision makers’ preferences in an uncertain environment

Author

Listed:
  • Omrani, Hashem
  • Valipour, Mahsa
  • Emrouznejad, Ali

Abstract

Data Envelopment Analysis (DEA) has been widely applied in measuring the efficiency of Decision-Making Units (DMUs). The conventional DEA has three major drawbacks: a) it does not consider Decision Makers’ (DMs) preferences in the evaluation process, b) DMUs in this model are flexible in weighting the criteria to reach the maximum possible efficiency, and c) it ignores the uncertainty in data. However, in many real-world applications, data are uncertain as well as imprecise and managers want to impose their opinions in decision-making procedure. To address these problems, this paper develops a novel multi-objective Best Worst Method (BWM)-Robust DEA (RDEA) for incorporating DMs’ preferences into DEA model in an uncertain environment. The proposed model tries to provide a new efficiency score which is more reliable and compatible with real problems by taking the advantages of the BWM to apply experts’ opinions and RDEA to model the uncertainty This bi-objective BWM-RDEA model is solved utilizing amin-max technique and so as to illustrate its usefulness, this model is implemented for assessing Iranian airlines.

Suggested Citation

  • Omrani, Hashem & Valipour, Mahsa & Emrouznejad, Ali, 2021. "A novel best worst method robust data envelopment analysis: Incorporating decision makers’ preferences in an uncertain environment," Operations Research Perspectives, Elsevier, vol. 8(C).
    • Handle: RePEc:eee:oprepe:v:8:y:2021:i:c:s2214716021000075
    DOI: 10.1016/j.orp.2021.100184
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2214716021000075
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.orp.2021.100184?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mahmoudi, Reza & Emrouznejad, Ali & Shetab-Boushehri, Seyyed-Nader & Hejazi, Seyed Reza, 2020. "The origins, development and future directions of data envelopment analysis approach in transportation systems," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    2. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
    3. Losa, Eduardo Tola & Arjomandi, Amir & Hervé Dakpo, K. & Bloomfield, Jason, 2020. "Efficiency comparison of airline groups in Annex 1 and non-Annex 1 countries: A dynamic network DEA approach," Transport Policy, Elsevier, vol. 99(C), pages 163-174.
    4. Wade D. Cook & Joe Zhu, 2008. "CAR-DEA: Context-Dependent Assurance Regions in DEA," Operations Research, INFORMS, vol. 56(1), pages 69-78, February.
    5. Tavassoli, Mohammad & Faramarzi, Gholam Reza & Farzipoor Saen, Reza, 2014. "Efficiency and effectiveness in airline performance using a SBM-NDEA model in the presence of shared input," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 146-153.
    6. Mohd Chachuli, Fairuz Suzana & Mat, Sohif & Ludin, Norasikin Ahmad & Sopian, Kamaruzzaman, 2021. "Performance evaluation of renewable energy R&D activities in Malaysia," Renewable Energy, Elsevier, vol. 163(C), pages 544-560.
    7. Phung, Manh-Trung & Cheng, Cheng-Ping & Guo, Chuanyin & Kao, Chen-Yu, 2020. "Mixed Network DEA with Shared Resources: A Case of Measuring Performance for Banking Industry," Operations Research Perspectives, Elsevier, vol. 7(C).
    8. Emrouznejad, Ali & Yang, Guo-liang, 2018. "A survey and analysis of the first 40 years of scholarly literature in DEA: 1978–2016," Socio-Economic Planning Sciences, Elsevier, vol. 61(C), pages 4-8.
    9. Ha, Hun-Koo & Wan, Yulai & Yoshida, Yuichiro & Zhang, Anming, 2013. "Airline market structure and airport efficiency: Evidence from major Northeast Asian airports," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 32-42.
    10. Sadjadi, S.J. & Omrani, H., 2008. "Data envelopment analysis with uncertain data: An application for Iranian electricity distribution companies," Energy Policy, Elsevier, vol. 36(11), pages 4247-4254, November.
    11. Charnes, A. & Cooper, W. W. & Huang, Z. M. & Sun, D. B., 1990. "Polyhedral Cone-Ratio DEA Models with an illustrative application to large commercial banks," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 73-91.
    12. ,, 2000. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 16(2), pages 287-299, April.
    13. Yu, Hang & Zhang, Yahua & Zhang, Anming & Wang, Kun & Cui, Qiang, 2019. "A comparative study of airline efficiency in China and India: A dynamic network DEA approach," Research in Transportation Economics, Elsevier, vol. 76(C).
    14. Mahmoudabadi, Mohammad Zarei & Emrouznejad, Ali, 2019. "Comprehensive performance evaluation of banking branches: A three-stage slacks-based measure (SBM) data envelopment analysis," International Review of Economics & Finance, Elsevier, vol. 64(C), pages 359-376.
    15. Mohamed Abdel-Basset & Weiping Ding & Rehab Mohamed & Noura Metawa, 2020. "An integrated plithogenic MCDM approach for financial performance evaluation of manufacturing industries," Risk Management, Palgrave Macmillan, vol. 22(3), pages 192-218, September.
    16. Thompson, Russell G. & Langemeier, Larry N. & Lee, Chih-Tah & Lee, Euntaik & Thrall, Robert M., 1990. "The role of multiplier bounds in efficiency analysis with application to Kansas farming," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 93-108.
    17. Heydari, Chiman & Omrani, Hashem & Taghizadeh, Rahim, 2020. "A fully fuzzy network DEA-Range Adjusted Measure model for evaluating airlines efficiency: A case of Iran," Journal of Air Transport Management, Elsevier, vol. 89(C).
    18. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    19. Haddad, Malik & Sanders, David, 2018. "Selection of discrete multiple criteria decision making methods in the presence of risk and uncertainty," Operations Research Perspectives, Elsevier, vol. 5(C), pages 357-370.
    20. Eduardo Tola Losa & Amir Arjomandi & K. Hervé Dakpo & Jason Bloomfield, 2020. "Efficiency comparison of airline groups in Annex 1 and non-Annex 1 countries: A dynamic network DEA approach [Comparaison de l'efficacité des groupes de compagnies aériennes dans les pays de l'Anne," Post-Print hal-03151906, HAL.
    21. Rezaei, Jafar, 2016. "Best-worst multi-criteria decision-making method: Some properties and a linear model," Omega, Elsevier, vol. 64(C), pages 126-130.
    22. Rezaei, Jafar, 2015. "Best-worst multi-criteria decision-making method," Omega, Elsevier, vol. 53(C), pages 49-57.
    23. C Kao & H-T Hung, 2005. "Data envelopment analysis with common weights: the compromise solution approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(10), pages 1196-1203, October.
    24. Jahangoshai Rezaee, Mustafa & Jozmaleki, Mehrdad & Valipour, Mahsa, 2018. "Integrating dynamic fuzzy C-means, data envelopment analysis and artificial neural network to online prediction performance of companies in stock exchange," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 489(C), pages 78-93.
    25. John M. Mulvey & Robert J. Vanderbei & Stavros A. Zenios, 1995. "Robust Optimization of Large-Scale Systems," Operations Research, INFORMS, vol. 43(2), pages 264-281, April.
    26. Omrani, Hashem & Soltanzadeh, Elham, 2016. "Dynamic DEA models with network structure: An application for Iranian airlines," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 52-61.
    27. A. Ben-Tal & A. Nemirovski, 1998. "Robust Convex Optimization," Mathematics of Operations Research, INFORMS, vol. 23(4), pages 769-805, November.
    28. EMROUZNEJAD, Ali & TAVANA, Madjid & HATAMI-MARBINI, Adel, 2014. "The state of the art in fuzzy data envelopment analysis," LIDAM Reprints CORE 2543, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    29. Chang, Yu-Chun & Yu, Ming-Miin & Chen, Po-Chi, 2013. "Evaluating the performance of Chinese airports," Journal of Air Transport Management, Elsevier, vol. 31(C), pages 19-21.
    30. M Zohrehbandian & A Makui & A Alinezhad, 2010. "A compromise solution approach for finding common weights in DEA: an improvement to Kao and Hung's approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(4), pages 604-610, April.
    31. Mohamed Abdel-Basset & Weiping Ding & Rehab Mohamed & Noura Metawa, 0. "An integrated plithogenic MCDM approach for financial performance evaluation of manufacturing industries," Risk Management, Palgrave Macmillan, vol. 0, pages 1-27.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Viktorija Skvarciany & Indrė Lapinskait&# & Viktorija Stasytyt&#, 2023. "Efficiency of Digital Economy in the Context of Sustainable Development: DEA-Tobit Approach," Prague Economic Papers, Prague University of Economics and Business, vol. 2023(2), pages 129-158.
    2. Mostafa Mardani Najafabadi & Hanieh Kazmi & Somayeh Shirzadi Laskookalayeh & Abas Abdeshahi, 2023. "Investigating the ability of fuzzy and robust DEA models to apply uncertainty conditions: an application for date palm producers," OPSEARCH, Springer;Operational Research Society of India, vol. 60(2), pages 776-801, June.
    3. Toloo, Mehdi & Mensah, Emmanuel Kwasi & Salahi, Maziar, 2022. "Robust optimization and its duality in data envelopment analysis," Omega, Elsevier, vol. 108(C).
    4. Ganji, S.S. & Dehghani, Alireza & Ajirlu, Shahrouz Fathi, 2024. "Evaluation of intercity road passenger transportation using a novel double-frontier game-regret-cross-efficiency," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hatami-Marbini, Adel & Arabmaldar, Aliasghar, 2021. "Robustness of Farrell cost efficiency measurement under data perturbations: Evidence from a US manufacturing application," European Journal of Operational Research, Elsevier, vol. 295(2), pages 604-620.
    2. Khezrimotlagh, Dariush & Kaffash, Sepideh & Zhu, Joe, 2022. "U.S. airline mergers’ performance and productivity change," Journal of Air Transport Management, Elsevier, vol. 102(C).
    3. Toloo, Mehdi & Mensah, Emmanuel Kwasi & Salahi, Maziar, 2022. "Robust optimization and its duality in data envelopment analysis," Omega, Elsevier, vol. 108(C).
    4. Arabmaldar, Aliasghar & Sahoo, Biresh K. & Ghiyasi, Mojtaba, 2023. "A generalized robust data envelopment analysis model based on directional distance function," European Journal of Operational Research, Elsevier, vol. 311(2), pages 617-632.
    5. Emmanuel Kwasi Mensah, 2020. "Robust data envelopment analysis via ellipsoidal uncertainty sets with application to the Italian banking industry," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 43(2), pages 491-518, December.
    6. Adel Hatami-Marbini & Aliasghar Arabmaldar & John Otu Asu, 2022. "Robust productivity growth and efficiency measurement with undesirable outputs: evidence from the oil industry," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1213-1254, December.
    7. Rafael Benítez & Vicente Coll-Serrano & Vicente J. Bolós, 2021. "deaR-Shiny: An Interactive Web App for Data Envelopment Analysis," Sustainability, MDPI, vol. 13(12), pages 1-19, June.
    8. Chao Lu & Jie Tao & Qiuxian An & Xiaodong Lai, 2020. "A second-order cone programming based robust data envelopment analysis model for the new-energy vehicle industry," Annals of Operations Research, Springer, vol. 292(1), pages 321-339, September.
    9. Nguyen, Minh-Anh Thi & Yu, Ming-Miin & Lirn, Taih-Cherng, 2022. "Revenue efficiency across airline business models: A bootstrap non-convex meta-frontier approach," Transport Policy, Elsevier, vol. 117(C), pages 108-117.
    10. Cook, Wade D. & Seiford, Larry M., 2009. "Data envelopment analysis (DEA) - Thirty years on," European Journal of Operational Research, Elsevier, vol. 192(1), pages 1-17, January.
    11. Nazila Aghayi & Madjid Tavana & Mohammad Ali Raayatpanah, 2016. "Robust efficiency measurement with common set of weights under varying degrees of conservatism and data uncertainty," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 10(3), pages 385-405.
    12. Sinuany-Stern, Zilla, 2023. "Foundations of operations research: From linear programming to data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1069-1080.
    13. Hashem Omrani & Meisam Shamsi & Ali Emrouznejad, 2023. "Evaluating sustainable efficiency of decision-making units considering undesirable outputs: an application to airline using integrated multi-objective DEA-TOPSIS," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 5899-5930, July.
    14. HOSSEINZADEH LOTFI, Farhad & HATAMI-MARBINI, Adel & AGRELL, Per & GHOLAMI, Kobra, 2013. "Centralized resource reduction and target setting under DEA control," LIDAM Discussion Papers CORE 2013005, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    15. Omid Valizadeh & Mojtaba Ghiyasi, 2023. "Assessing telecommunication contractor firms using a hybrid DEA-BWM method," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 33(4), pages 189-200.
    16. Fragoudaki, Alexandra & Giokas, Dimitris, 2016. "Airport performance in a tourism receiving country: Evidence from Greece," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 80-89.
    17. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    18. Roya Soltani & Seyed J Sadjadi, 2014. "Reliability optimization through robust redundancy allocation models with choice of component type under fuzziness," Journal of Risk and Reliability, , vol. 228(5), pages 449-459, October.
    19. Ahti Salo & Antti Punkka, 2011. "Ranking Intervals and Dominance Relations for Ratio-Based Efficiency Analysis," Management Science, INFORMS, vol. 57(1), pages 200-214, January.
    20. Olesen, Ole B. & Petersen, Niels Christian, 2016. "Stochastic Data Envelopment Analysis—A review," European Journal of Operational Research, Elsevier, vol. 251(1), pages 2-21.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:oprepe:v:8:y:2021:i:c:s2214716021000075. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/operations-research-perspectives .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.