IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i19p8075-d422023.html
   My bibliography  Save this article

A Hybrid Genetic Algorithm-Ratio DEA Approach for Assessing Sustainable Efficiency in Two-Echelon Supply Chains

Author

Listed:
  • Mohammad Reza Mozaffari

    (Department of Mathematics, Shiraz Branch, Islamic Azad University, Shiraz, Iran)

  • Sahar Ostovan

    (Department of Mathematics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran)

  • Peter Fernandes Wanke

    (COPPEAD Graduate Business School, Federal University of Rio de Janeiro, Rua Paschoal Lemme, 355, Rio de Janeiro 21949-900, Brazil)

Abstract

Measuring sustainable efficiency is a wide research topic that has gained increased relevance over the course of the years, particularly in the field of supply chain management. In this paper, novel Data Envelopment Analysis—ratio data (DEA-R) models are used to assess sustainable efficiency in two-echelon supply chains based on endogenous factors. Genetic algorithms are employed to determine optimal productive weights for each echelon and the overall supply chain by taking into account the hidden correlation structures among them as expressed in non-linear multi-objective functions. A case study on 20 firefighting stations is presented to illustrate the approach proposed and its accuracy for decision-making, as long as the issues of pseudo inefficiency and over estimation of efficiency scores are mitigated. Results indicate that the method proposed is capable of reducing efficiency estimation biases due to endogenous sustainable factors by yielding overall scores lower than or equal to the product of the efficiencies of the individual stages.

Suggested Citation

  • Mohammad Reza Mozaffari & Sahar Ostovan & Peter Fernandes Wanke, 2020. "A Hybrid Genetic Algorithm-Ratio DEA Approach for Assessing Sustainable Efficiency in Two-Echelon Supply Chains," Sustainability, MDPI, vol. 12(19), pages 1-17, September.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8075-:d:422023
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/19/8075/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/12/19/8075/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Liu, W.B. & Zhang, D.Q. & Meng, W. & Li, X.X. & Xu, F., 2011. "A study of DEA models without explicit inputs," Omega, Elsevier, vol. 39(5), pages 472-480, October.
    2. Eskandarpour, Majid & Dejax, Pierre & Miemczyk, Joe & Péton, Olivier, 2015. "Sustainable supply chain network design: An optimization-oriented review," Omega, Elsevier, vol. 54(C), pages 11-32.
    3. Azadi, Majid & Shabani, Amir & Khodakarami, Mohsen & Farzipoor Saen, Reza, 2014. "Planning in feasible region by two-stage target-setting DEA methods: An application in green supply chain management of public transportation service providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 324-338.
    4. Floridi, Matteo & Pagni, Simone & Falorni, Simone & Luzzati, Tommaso, 2011. "An exercise in composite indicators construction: Assessing the sustainability of Italian regions," Ecological Economics, Elsevier, vol. 70(8), pages 1440-1447, June.
    5. Olesen, Ole Bent & Petersen, Niels Christian & Podinovski, Victor V., 2015. "Efficiency analysis with ratio measures," European Journal of Operational Research, Elsevier, vol. 245(2), pages 446-462.
    6. Olesen, Ole Bent & Petersen, Niels Christian & Podinovski, Victor V., 2017. "Efficiency measures and computational approaches for data envelopment analysis models with ratio inputs and outputs," European Journal of Operational Research, Elsevier, vol. 261(2), pages 640-655.
    7. Liu, Qian & Zheng, Lucy, 2016. "Assessing the economic performance of an environmental sustainable supply chain in reducing environmental externalitiesAuthor-Name: Ding, Huiping," European Journal of Operational Research, Elsevier, vol. 255(2), pages 463-480.
    8. Singh, Akshit & Shukla, Nagesh & Mishra, Nishikant, 2018. "Social media data analytics to improve supply chain management in food industries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 398-415.
    9. Yoo, Seung Ho & Cheong, Taesu, 2018. "Quality improvement incentive strategies in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 331-342.
    10. Zhong, Yuanguang & Shu, Jia & Xie, Wei & Zhou, Yong-Wu, 2018. "Optimal trade credit and replenishment policies for supply chain network design," Omega, Elsevier, vol. 81(C), pages 26-37.
    11. Majid Azadi & Seyed Mostafa Mirhedayatian & Reza Farzipoor Saen & Mahshid Hatamzad & Ehsan Momeni, 2017. "Green supplier selection: a novel fuzzy double frontier data envelopment analysis model to deal with undesirable outputs and dual-role factors," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 25(2), pages 160-181.
    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. Wanke, Peter & Araujo, Claudia & Tan, Yong & Antunes, Jorge & Pimenta, Roberto, 2023. "Efficiency in university hospitals: A genetic optimized semi-parametric production function," Operations Research Perspectives, Elsevier, vol. 10(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. Javad Gerami & Reza Kiani Mavi & Reza Farzipoor Saen & Neda Kiani Mavi, 2023. "A novel network DEA-R model for evaluating hospital services supply chain performance," Annals of Operations Research, Springer, vol. 324(1), pages 1041-1066, May.
    2. Boďa, Martin & Zimková, Emília, 2021. "Overcoming the loan-to-deposit ratio by a financial intermediation measure — A perspective instrument of financial stability policy," Journal of Policy Modeling, Elsevier, vol. 43(5), pages 1051-1069.
    3. Mozaffari, Mohammad Reza & Dadkhah, Fatemeh & Jablonsky, Josef & Wanke, Peter Fernandes, 2020. "Finding efficient surfaces in DEA-R models," Applied Mathematics and Computation, Elsevier, vol. 386(C).
    4. Dariush Akbarian, 2021. "Network DEA based on DEA-ratio," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-26, December.
    5. Javad Gerami & Mohammad Reza Mozaffari & P. F. Wanke & Henrique Correa, 2022. "A novel slacks-based model for efficiency and super-efficiency in DEA-R," Operational Research, Springer, vol. 22(4), pages 3373-3410, September.
    6. Ole Bent Olesen & Niels Christian Petersen & Victor V. Podinovski, 2022. "Scale characteristics of variable returns-to-scale production technologies with ratio inputs and outputs," Annals of Operations Research, Springer, vol. 318(1), pages 383-423, November.
    7. Cook, Wade D. & Ruiz, José L. & Sirvent, Inmaculada & Zhu, Joe, 2017. "Within-group common benchmarking using DEA," European Journal of Operational Research, Elsevier, vol. 256(3), pages 901-910.
    8. Youcef MECHOUAR & V Hovelaque & C Gaigné, 2021. "Effect of raw material substitution on the facility location decision under a carbon tax policy," Post-Print hal-04155066, HAL.
    9. Ole Bent Olesen & Niels Christian Petersen & Victor V. Podinovski, 2022. "The structure of production technologies with ratio inputs and outputs," Journal of Productivity Analysis, Springer, vol. 57(3), pages 255-267, June.
    10. Victoria Wojcik & Harald Dyckhoff & Marcel Clermont, 2019. "Is data envelopment analysis a suitable tool for performance measurement and benchmarking in non-production contexts?," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 559-595, December.
    11. Boďa, Martin, 2024. "Financial depth versus more comprehensive metrics of financial development in tests of the finance-growth nexus," Economic Systems, Elsevier, vol. 48(1).
    12. Mehdiloozad, Mahmood & Podinovski, Victor V., 2018. "Nonparametric production technologies with weakly disposable inputs," European Journal of Operational Research, Elsevier, vol. 266(1), pages 247-258.
    13. Victor V. Podinovski & Ole Bent Olesen & Cláudia S. Sarrico, 2018. "Nonparametric Production Technologies with Multiple Component Processes," Operations Research, INFORMS, vol. 66(1), pages 282-300, January.
    14. Zahiri, Behzad & Zhuang, Jun & Mohammadi, Mehrdad, 2017. "Toward an integrated sustainable-resilient supply chain: A pharmaceutical case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 109-142.
    15. Podinovski, Victor V. & Wu, Junlin & Argyris, Nikolaos, 2024. "Production trade-offs in models of data envelopment analysis with ratio inputs and outputs: An application to schools in England," European Journal of Operational Research, Elsevier, vol. 313(1), pages 359-372.
    16. D’Inverno, Giovanna & Smet, Mike & De Witte, Kristof, 2021. "Impact evaluation in a multi-input multi-output setting: Evidence on the effect of additional resources for schools," European Journal of Operational Research, Elsevier, vol. 290(3), pages 1111-1124.
    17. Rita Matos & Diogo Ferreira & Maria Isabel Pedro, 2021. "Economic Analysis of Portuguese Public Hospitals Through the Construction of Quality, Efficiency, Access, and Financial Related Composite Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(1), pages 361-392, August.
    18. Wang, Haiyan & Zhan, Sha-lei & Ng, Chi To & Cheng, T.C.E., 2020. "Coordinating quality, time, and carbon emissions in perishable food production: A new technology integrating GERT and the Bayesian approach," International Journal of Production Economics, Elsevier, vol. 225(C).
    19. Olga Bogdanov & Veljko Jeremiæ & Sandra Jednak & Mladen Èudanov, 2019. "Scrutinizing the Smart City Index: a multivariate statistical approach," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 37(2), pages 777-799.
    20. Färe, Rolf & Karagiannis, Giannis, 2014. "Benefit-of-the-doubt aggregation and the diet problem," Omega, Elsevier, vol. 47(C), pages 33-35.

    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:gam:jsusta:v:12:y:2020:i:19:p:8075-:d:422023. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.