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A new clustering approach using data envelopment analysis

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  • Po, Rung-Wei
  • Guh, Yuh-Yuan
  • Yang, Miin-Shen

Abstract

In this paper, we present a new clustering method that involves data envelopment analysis (DEA). The proposed DEA-based clustering approach employs the piecewise production functions derived from the DEA method to cluster the data with input and output items. Thus, each evaluated decision-making unit (DMU) not only knows the cluster that it belongs to, but also checks the production function type that it confronts. It is important for managerial decision-making where decision-makers are interested in knowing the changes required in combining input resources so it can be classified into a desired cluster/class. In particular, we examine the fundamental CCR model to set up the DEA clustering approach. While this approach has been carried for the CCR model, the proposed approach can be easily extended to other DEA models without loss of generality. Two examples are given to explain the use and effectiveness of the proposed DEA-based clustering method.

Suggested Citation

  • Po, Rung-Wei & Guh, Yuh-Yuan & Yang, Miin-Shen, 2009. "A new clustering approach using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 199(1), pages 276-284, November.
  • Handle: RePEc:eee:ejores:v:199:y:2009:i:1:p:276-284
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    Cited by:

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    5. Uwe Cantner & Nils Grashof & Thomas Grebel & Anna Kosmützky & Georg Krücken & Xijie Zhang, 2023. "Competitive positioning of German Universities: Deliberate Decision, Fate, or Fiction?," Jena Economics Research Papers 2023-012, Friedrich-Schiller-University Jena.
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    7. Massimo Filippini & Luis Orea, 2014. "Applications of the stochastic frontier approach in Energy Economics," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 35-42.
    8. Nam Hyok Kim & Feng He & Kwon Ryong Hong & Hyok-Chol Kim & Sok-Min Han, 2024. "A new common weights DEA model based on cluster analysis," Operational Research, Springer, vol. 24(2), pages 1-35, June.
    9. Amin, Gholam R. & Emrouznejad, Ali & Rezaei, S., 2011. "Some clarifications on the DEA clustering approach," European Journal of Operational Research, Elsevier, vol. 215(2), pages 498-501, December.
    10. Kim, Nam Hyok & He, Feng & Zhang, Hongjie & Hong, Kwon Ryong & Ri, Kwang-Chol, 2023. "A data envelopment analysis-based clustering approach under dynamic situations," European Journal of Operational Research, Elsevier, vol. 311(1), pages 251-262.
    11. Tsionas, Mike G., 2023. "Clustering and meta-envelopment in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 304(2), pages 763-778.
    12. Jiyoung Lee & Gyunghyun Choi, 2019. "A Dominance-Based Network Method for Ranking Efficient Decision-Making Units in Data Envelopment Analysis," Sustainability, MDPI, vol. 11(7), pages 1-20, April.
    13. Esmaeil Mehdizadeh & Mohammad Teimouri & Arash Zaretalab & S. T. A. Niaki, 2017. "A Combined Approach Based on K-Means and Modified Electromagnetism-Like Mechanism for Data Clustering," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(05), pages 1279-1307, September.
    14. Marius Sorin Dincă & Gheorghiţa Dincă & Maria Letiţia Andronic, 2016. "Efficiency and Sustainability of Local Public Goods and Services. Case Study for Romania," Sustainability, MDPI, vol. 8(8), pages 1-24, August.
    15. Krüger, Jens J., 2010. "Comment on "A new clustering approach using data envelopment analysis"," European Journal of Operational Research, Elsevier, vol. 206(1), pages 269-270, October.
    16. Liu, Yaqin & Zhao, Guohao & Zhao, Yushan, 2016. "An analysis of Chinese provincial carbon dioxide emission efficiencies based on energy consumption structure," Energy Policy, Elsevier, vol. 96(C), pages 524-533.
    17. Tsionas, Mike G., 2021. "Optimal combinations of stochastic frontier and data envelopment analysis models," European Journal of Operational Research, Elsevier, vol. 294(2), pages 790-800.
    18. Spring C. Hsu, 2018. "Performance of Major Franchised Takeout-Tea Brands in Taiwan," International Journal of Science and Business, IJSAB International, vol. 2(4), pages 791-799.
    19. Llorca, Manuel & Orea, Luis & Pollitt, Michael G., 2014. "Using the latent class approach to cluster firms in benchmarking: An application to the US electricity transmission industry," Operations Research Perspectives, Elsevier, vol. 1(1), pages 6-17.
    20. Lee, Jiyoung & Kim, Chulyeon & Choi, Gyunghyun, 2019. "Exploring data envelopment analysis for measuring collaborated innovation efficiency of small and medium-sized enterprises in Korea," European Journal of Operational Research, Elsevier, vol. 278(2), pages 533-545.
    21. Georgiadis, Georgios & Politis, Ioannis & Papaioannou, Panagiotis, 2014. "Measuring and improving the efficiency and effectiveness of bus public transport systems," Research in Transportation Economics, Elsevier, vol. 48(C), pages 84-91.
    22. Muhammed Ordu & Hediye Kirli Akin & Eren Demir, 2021. "Healthcare systems and Covid19: Lessons to be learnt from efficient countries," International Journal of Health Planning and Management, Wiley Blackwell, vol. 36(5), pages 1476-1485, September.
    23. Enzo Barberio Mariano & Diogo Ferraz & Simone Cristina Oliveira Gobbo, 2021. "The Human Development Index with Multiple Data Envelopment Analysis Approaches: A Comparative Evaluation Using Social Network Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(2), pages 443-500, September.
    24. Dulá, J.H. & López, F.J., 2013. "DEA with streaming data," Omega, Elsevier, vol. 41(1), pages 41-47.

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