IDEAS home Printed from https://ideas.repec.org/a/wut/journl/v3y2019p77-98id1437.html
   My bibliography  Save this article

Flexible measure in the presence of the partial input to output impacts process

Author

Listed:
  • Rita Shakouri
  • Maziar Salahi
  • Sohrab Kordrostami
  • Jie Wu

Abstract

Precise recognition of the nonparametric measurement approach in the production process and proper application of accurate techniques to categorise the variables play a key role in the process of improving performance of decision-making units (DMUs). The classical data envelopment analysis (DEA) models require that the status of all inputs and outputs measures be precisely specified in advance. However, there are situations where a performance measure can play input role for some DMUs and output role for the others. This paper introduces an approach to determine the situation of such flexibility where in the presence of resource sharing among subunits, the partial input will impact output in DEA. As a result, DMUs have a fair evaluation when compared to each other. Likewise, the maximum improvement is obtained in aggregate efficiency due to partial input to output impacts. The proposed approach is applied to a set of real data collected from 30 branches of an Iranian bank.

Suggested Citation

  • Rita Shakouri & Maziar Salahi & Sohrab Kordrostami & Jie Wu, 2019. "Flexible measure in the presence of the partial input to output impacts process," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 29(3), pages 77-98.
    • Handle: RePEc:wut:journl:v:3:y:2019:p:77-98:id:1437
    DOI: 10.37190/ord190306
    as

    Download full text from publisher

    File URL: https://ord.pwr.edu.pl/assets/papers_archive/1437%20-%20published.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.37190/ord190306?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
    ---><---

    References listed on IDEAS

    as
    1. Wu, Jie & Zhu, Qingyuan & Ji, Xiang & Chu, Junfei & Liang, Liang, 2016. "Two-stage network processes with shared resources and resources recovered from undesirable outputs," European Journal of Operational Research, Elsevier, vol. 251(1), pages 182-197.
    2. Wen-Chih Chen, 2014. "Revisiting dual-role factors in data envelopment analysis: derivation and implications," IISE Transactions, Taylor & Francis Journals, vol. 46(7), pages 653-663.
    3. Jingjing Ding & Wei Dong & Gongbing Bi & Liang Liang, 2015. "A decision model for supplier selection in the presence of dual-role factors," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 66(5), pages 737-746, May.
    4. 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.
    5. Imanirad, Raha & Cook, Wade D. & Aviles-Sacoto, Sonia Valeria & Zhu, Joe, 2015. "Partial input to output impacts in DEA: The case of DMU-specific impacts," European Journal of Operational Research, Elsevier, vol. 244(3), pages 837-844.
    6. Lorenzo Castelli & Raffaele Pesenti & Walter Ukovich, 2010. "A classification of DEA models when the internal structure of the Decision Making Units is considered," Annals of Operations Research, Springer, vol. 173(1), pages 207-235, January.
    7. Beasley, J. E., 1990. "Comparing university departments," Omega, Elsevier, vol. 18(2), pages 171-183.
    8. Paradi, Joseph C. & Zhu, Haiyan, 2013. "A survey on bank branch efficiency and performance research with data envelopment analysis," Omega, Elsevier, vol. 41(1), pages 61-79.
    9. Wade Cook & Moez Hababou & Hans Tuenter, 2000. "Multicomponent Efficiency Measurement and Shared Inputs in Data Envelopment Analysis: An Application to Sales and Service Performance in Bank Branches," Journal of Productivity Analysis, Springer, vol. 14(3), pages 209-224, November.
    10. Rajiv D. Banker & Richard C. Morey, 1986. "Efficiency Analysis for Exogenously Fixed Inputs and Outputs," Operations Research, INFORMS, vol. 34(4), pages 513-521, August.
    11. Cook, Wade D. & Zhu, Joe, 2007. "Classifying inputs and outputs in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 180(2), pages 692-699, July.
    12. Wang, Ke & Huang, Wei & Wu, Jie & Liu, Ying-Nan, 2014. "Efficiency measures of the Chinese commercial banking system using an additive two-stage DEA," Omega, Elsevier, vol. 44(C), pages 5-20.
    13. Qingxian An & Haoxun Chen & Jie Wu & Liang Liang, 2015. "Measuring slacks-based efficiency for commercial banks in China by using a two-stage DEA model with undesirable output," Annals of Operations Research, Springer, vol. 235(1), pages 13-35, December.
    14. Raha Imanirad & Wade D. Cook & Joe Zhu, 2013. "Partial input to output impacts in DEA: Production considerations and resource sharing among business subunits," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(3), pages 190-207, April.
    15. Wang Hong Li & Liang Liang & Sonia Valeria Avilés-Sacoto & Raha Imanirad & Wade D. Cook & Joe Zhu, 2017. "Modeling efficiency in the presence of multiple partial input to output processes," Annals of Operations Research, Springer, vol. 250(1), pages 235-248, March.
    16. Bala, Kamel & Cook, Wade D., 2003. "Performance measurement with classification information: an enhanced additive DEA model," Omega, Elsevier, vol. 31(6), pages 439-450, December.
    17. Cook, Wade D. & Hababou, Moez, 2001. "Sales performance measurement in bank branches," Omega, Elsevier, vol. 29(4), pages 299-307, August.
    18. A. Charnes & W. W. Cooper, 1962. "Programming with linear fractional functionals," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 9(3‐4), pages 181-186, September.
    19. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    Full references (including those not matched with items on IDEAS)

    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. Dan Li & Yanfeng Li & Yeming Gong & Jiawei Yang, 2021. "Estimation of bank performance from multiple perspectives: an alternative solution to the deposit dilemma," Journal of Productivity Analysis, Springer, vol. 56(2), pages 151-170, December.
    2. Mehdi Toloo & Mona Barat, 2015. "On considering dual-role factor in supplier selection problem," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 82(1), pages 107-122, August.
    3. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    4. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min, 2016. "Research fronts in data envelopment analysis," Omega, Elsevier, vol. 58(C), pages 33-45.
    5. Entezam, Hasan Farmani & Sobhani, Farzad Movahedi & Najafi, Seyed Esmaeil & Roshdi, Israfil, 2020. "A multi-component enhanced Russell measure of efficiency: With application to water supply plans," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    6. Sanjeet Singh & Prabhat Ranjan, 2018. "Efficiency analysis of non-homogeneous parallel sub-unit systems for the performance measurement of higher education," Annals of Operations Research, Springer, vol. 269(1), pages 641-666, October.
    7. Touati-Tliba, Mohamed, 2024. "Comparative performance of Algeria's education districts: The Influence of colonial legacy through cultural capital," Socio-Economic Planning Sciences, Elsevier, vol. 91(C).
    8. Mishra, Neelesh Kumar & Chakraborty, Abhishek & Singh, Sanjeet & Ranjan, Prabhat, 2023. "Efficiency analysis of engineering colleges in India: Decomposition into parallel sub-processes systems," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    9. Paradi, Joseph C. & Rouatt, Stephen & Zhu, Haiyan, 2011. "Two-stage evaluation of bank branch efficiency using data envelopment analysis," Omega, Elsevier, vol. 39(1), pages 99-109, January.
    10. Cao, Ting & Cook, Wade D. & Kristal, M. Murat, 2022. "Has the technological investment been worth it? Assessing the aggregate efficiency of non-homogeneous bank holding companies in the digital age," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    11. Cook, Wade D. & Zhu, Joe, 2007. "Classifying inputs and outputs in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 180(2), pages 692-699, July.
    12. Avilés-Sacoto, Sonia Valeria & Cook, Wade D. & Güemes-Castorena, David & Zhu, Joe, 2020. "Modelling Efficiency in Regional Innovation Systems: A Two-Stage Data Envelopment Analysis Problem with Shared Outputs within Groups of Decision-Making Units," European Journal of Operational Research, Elsevier, vol. 287(2), pages 572-582.
    13. Tatiana Bencova & Andrea Bohacikova, 2022. "DEA in Performance Measurement of Two-Stage Processes: Comparative Overview of the Literature," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 111-129.
    14. Kao, Chiang, 2014. "Network data envelopment analysis: A review," European Journal of Operational Research, Elsevier, vol. 239(1), pages 1-16.
    15. Majid Azadi & Balal Karimi & William Ho & Reza Farzipoor Saen, 2022. "Assessing green performance of power plants by multiple hybrid returns to scale technologies," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1177-1211, December.
    16. Yu Shi & Anyu Yu & Huong Ngo Higgins & Joe Zhu, 2021. "Shared and unsplittable performance links in network DEA," Annals of Operations Research, Springer, vol. 303(1), pages 507-528, August.
    17. 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.
    18. Raha Imanirad & Wade D. Cook & Joe Zhu, 2013. "Partial input to output impacts in DEA: Production considerations and resource sharing among business subunits," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(3), pages 190-207, April.
    19. Mohammad Nemati & Reza Kazemi Matin & Mehdi Toloo, 2020. "A two-stage DEA model with partial impacts between inputs and outputs: application in refinery industries," Annals of Operations Research, Springer, vol. 295(1), pages 285-312, December.
    20. 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.

    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:wut:journl:v:3:y:2019:p:77-98:id:1437. 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: Adam Kasperski (email available below). General contact details of provider: https://edirc.repec.org/data/iopwrpl.html .

    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.