IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v70y2020ics0038012119300667.html
   My bibliography  Save this article

A multi-component enhanced Russell measure of efficiency: With application to water supply plans

Author

Listed:
  • Entezam, Hasan Farmani
  • Sobhani, Farzad Movahedi
  • Najafi, Seyed Esmaeil
  • Roshdi, Israfil

Abstract

Public water providers aim at developing a water supply plan (WSP) that not only provides a reliable and satisfactory level of service but also is efficient in terms of performance. This paper deals with evaluating the performance of WSPs within the framework of multi-component data envelopment analysis. Specifically, we consider the overall performance of each WSP as a decision making unit (DMU) so that economic, social, hygienic, technological, managerial and environmental performances of the WSP make up independent components of the defined DMU. To assess the performance of a set of WPSs, we propose a multi-component enhanced Russell measure of efficiency that takes all sources of inefficiency into account. We show that the proposed measure can be decomposed into individual efficiency measures at component level. This decomposition much enhances the efficiency of computing the proposed measure, noting the fact that this measure is obtained by solving a single linear program. It also guarantees the proposed measure to inherit two important—unit invariance and strong monotonicity—properties of the conventional enhanced Russell measure. In our empirical study, we apply our model to evaluate the efficiency of 10 urban WSPs in Qom city of Iran. In line with experts’ practical opinions, our findings reveal that the (relatively) most efficient WSP is to construct a potable water network and separation of non-drinking water network for urban usage.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:soceps:v:70:y:2020:i:c:s0038012119300667
    DOI: 10.1016/j.seps.2019.06.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012119300667
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.seps.2019.06.004?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. Chen, Ci & Yan, Hong, 2011. "Network DEA model for supply chain performance evaluation," European Journal of Operational Research, Elsevier, vol. 213(1), pages 147-155, August.
    2. Roll, Yaakov & Cook, Wade D., 1993. "Partial efficiencies in data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 27(3), pages 171-179, September.
    3. Lovell, C. A. Knox & Pastor, Jesus T., 1999. "Radial DEA models without inputs or without outputs," European Journal of Operational Research, Elsevier, vol. 118(1), pages 46-51, October.
    4. Wade D. Cook & Joe Zhu, 2006. "Incorporating Multiprocess Performance Standards into the DEA Framework," Operations Research, INFORMS, vol. 54(4), pages 656-665, August.
    5. 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.
    6. Amor Diez-Ticio & Maria-Jesus Mancebon, 2002. "The efficiency of the Spanish police service: an application of the multiactivity DEA model," Applied Economics, Taylor & Francis Journals, vol. 34(3), pages 351-362.
    7. 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.
    8. 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.
    9. Kao, Chiang & Lin, Pei-Huang, 2011. "Qualitative factors in data envelopment analysis: A fuzzy number approach," European Journal of Operational Research, Elsevier, vol. 211(3), pages 586-593, June.
    10. Cook, Wade D. & Zhu, Joe, 2007. "Within-group common weights in DEA: An analysis of power plant efficiency," European Journal of Operational Research, Elsevier, vol. 178(1), pages 207-216, April.
    11. 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.
    12. Pastor, J. T. & Ruiz, J. L. & Sirvent, I., 1999. "An enhanced DEA Russell graph efficiency measure," European Journal of Operational Research, Elsevier, vol. 115(3), pages 596-607, June.
    13. Wade D. Cook & Julie Harrison & Raha Imanirad & Paul Rouse & Joe Zhu, 2013. "Data Envelopment Analysis with Nonhomogeneous DMUs," Operations Research, INFORMS, vol. 61(3), pages 666-676, June.
    14. Jamal Ouenniche & Skarleth Carrales, 2018. "Assessing efficiency profiles of UK commercial banks: a DEA analysis with regression-based feedback," Annals of Operations Research, Springer, vol. 266(1), pages 551-587, July.
    15. Monica Bonacina & Anna Cretì & Carlotta Mariotto & Federico Pontoni, 2014. "What Determines Efficiency? An Analysis of the Italian Water Sector," IEFE Working Papers 72, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    16. Cook, Wade D. & Hababou, Moez, 2001. "Sales performance measurement in bank branches," Omega, Elsevier, vol. 29(4), pages 299-307, August.
    17. Kao, Chiang, 2014. "Network data envelopment analysis: A review," European Journal of Operational Research, Elsevier, vol. 239(1), pages 1-16.
    18. Tsai, P. F. & Mar Molinero, C., 2002. "A variable returns to scale data envelopment analysis model for the joint determination of efficiencies with an example of the UK health service," European Journal of Operational Research, Elsevier, vol. 141(1), pages 21-38, August.
    19. Wade D. Cook & R. H. Green, 2014. "Multicomponent Efficiency Measurement and Core Business Identification in Multiplant Firms," International Series in Operations Research & Management Science, in: Wade D. Cook & Joe Zhu (ed.), Data Envelopment Analysis, edition 127, chapter 0, pages 431-449, Springer.
    20. 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.
    21. 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.
    22. Raha Imanirad & Wade D. Cook & Joe Zhu, 2015. "Partial Input to Output Impacts in DEA: Production Considerations and Resource Sharing Among Business Sub-Units," International Series in Operations Research & Management Science, in: Joe Zhu (ed.), Data Envelopment Analysis, edition 127, chapter 13, pages 355-380, Springer.
    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. Nassiri-Mofakham, Faria & Huhns, Michael N., 2023. "Role of culture in water resources management via sustainable social automated negotiation," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    2. Moraes, Ricardo Kalil & Wanke, Peter Fernandes & Faria, João Ricardo, 2021. "Unveiling the endogeneity between social-welfare and labor efficiency: Two-stage NDEA neural network approach," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).
    3. Shi, Zhen & She, Zhiyu & Chiu, Yung-ho & Qin, Shijiong & Zhang, Lina, 2021. "Assessment and improvement analysis of economic production, water pollution, and sewage treatment efficiency in China," Socio-Economic Planning Sciences, Elsevier, vol. 74(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. Kao, Chiang, 2014. "Network data envelopment analysis: A review," European Journal of Operational Research, Elsevier, vol. 239(1), pages 1-16.
    2. Xiyang Lei & Yongjun Li & Alec Morton, 2022. "Dominance and ranking interval in DEA parallel production systems," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(2), pages 649-675, June.
    3. 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.
    4. Yande Gong & Joe Zhu & Ya Chen & Wade D. Cook, 2018. "DEA as a tool for auditing: application to Chinese manufacturing industry with parallel network structures," Annals of Operations Research, Springer, vol. 263(1), pages 247-269, April.
    5. 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.
    6. 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.
    7. Zha, Yong & Liang, Liang, 2010. "Two-stage cooperation model with input freely distributed among the stages," European Journal of Operational Research, Elsevier, vol. 205(2), pages 332-338, September.
    8. Jolly Puri & Shiv Prasad Yadav & Harish Garg, 2017. "A new multi-component DEA approach using common set of weights methodology and imprecise data: an application to public sector banks in India with undesirable and shared resources," Annals of Operations Research, Springer, vol. 259(1), pages 351-388, December.
    9. 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.
    10. Roets, Bart & Verschelde, Marijn & Christiaens, Johan, 2018. "Multi-output efficiency and operational safety: An analysis of railway traffic control centre performance," European Journal of Operational Research, Elsevier, vol. 271(1), pages 224-237.
    11. 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.
    12. 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.
    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. An, Qingxian & Wen, Yao & Ding, Tao & Li, Yongli, 2019. "Resource sharing and payoff allocation in a three-stage system: Integrating network DEA with the Shapley value method," Omega, Elsevier, vol. 85(C), pages 16-25.
    15. W D Cook & J Zhu, 2011. "Output-specific input-assurance regions in DEA," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(10), pages 1881-1887, October.
    16. Despotis, Dimitris K. & Koronakos, Gregory & Sotiros, Dimitris, 2016. "The “weak-link” approach to network DEA for two-stage processes," European Journal of Operational Research, Elsevier, vol. 254(2), pages 481-492.
    17. Wei-Kang Wang & Wen-Min Lu & Yu-Han Wang, 2013. "The relationship between bank performance and intellectual capital in East Asia," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(2), pages 1041-1062, February.
    18. Chen, Chih Cheng, 2017. "Measuring departmental and overall regional performance: applying the multi-activity DEA model to Taiwan׳s cities/counties," Omega, Elsevier, vol. 67(C), pages 60-80.
    19. Kao, Chiang, 2022. "A maximum slacks-based measure of efficiency for closed series production systems," Omega, Elsevier, vol. 106(C).
    20. Kao, Chiang, 2017. "Efficiency measurement and frontier projection identification for general two-stage systems in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 261(2), pages 679-689.

    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:soceps:v:70:y:2020:i:c:s0038012119300667. 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.elsevier.com/locate/seps .

    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.