IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v201y2010i2p568-580.html
   My bibliography  Save this article

Benchmark optimization and attribute identification for improvement of container terminals

Author

Listed:
  • Sharma, Mithun J.
  • Yu, Song Jin

Abstract

The aim of this paper is to optimize the benchmarks and prioritize the variables of decision-making units (DMUs) in data envelopment analysis (DEA) model. In DEA, there is no scope to differentiate and identify threats for efficient DMUs from the inefficient set. Although benchmarks in DEA allow for identification of targets for improvement, it does not prioritize targets or prescribe level-wise improvement path for inefficient units. This paper presents a decision tree based DEA model to enhance the capability and flexibility of classical DEA. The approach is illustrated through its application to container port industry. The method proceeds by construction of multiple efficient frontiers to identify threats for efficient/inefficient DMUs, provide level-wise reference set for inefficient terminals and diagnose the factors that differentiate the performance of inefficient DMUs. It is followed by identification of significant attributes crucial for improvement in different performance levels. The application of this approach will enable decision makers to identify threats and opportunities facing their business and to improve inefficient units relative to their maximum capacity. In addition, it will help them to make intelligent investment on target factors that can improve their firms' productivity.

Suggested Citation

  • Sharma, Mithun J. & Yu, Song Jin, 2010. "Benchmark optimization and attribute identification for improvement of container terminals," European Journal of Operational Research, Elsevier, vol. 201(2), pages 568-580, March.
  • Handle: RePEc:eee:ejores:v:201:y:2010:i:2:p:568-580
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377-2217(09)00188-X
    Download Restriction: Full text for ScienceDirect subscribers only

    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. 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.
    2. Kevin Cullinane & Dong-Wook Song, 2003. "A stochastic frontier model of the productive efficiency of Korean container terminals," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 251-267.
    3. Korhonen, Pekka J. & Luptacik, Mikulas, 2004. "Eco-efficiency analysis of power plants: An extension of data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 154(2), pages 437-446, April.
    4. Drake, Leigh & Simper, R., 2003. "The measurement of English and Welsh police force efficiency: A comparison of distance function models," European Journal of Operational Research, Elsevier, vol. 147(1), pages 165-186, May.
    5. Ro-Kyung Park & Prabir De, 2004. "An Alternative Approach to Efficiency Measurement of Seaports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 6(1), pages 53-69, March.
    6. Tongzon, Jose, 2001. "Efficiency measurement of selected Australian and other international ports using data envelopment analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(2), pages 107-122, February.
    7. Dyckhoff, H. & Allen, K., 2001. "Measuring ecological efficiency with data envelopment analysis (DEA)," European Journal of Operational Research, Elsevier, vol. 132(2), pages 312-325, July.
    8. 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.
    9. Carlos Pestana Barros & Manolis Athanassiou, 2004. "Efficiency in European Seaports with DEA: Evidence from Greece and Portugal," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 6(2), pages 122-140, June.
    10. Amos Tversky & Itamar Simonson, 1993. "Context-Dependent Preferences," Management Science, INFORMS, vol. 39(10), pages 1179-1189, October.
    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. repec:pal:marecl:v:20:y:2018:i:1:d:10.1057_mel.2016.15 is not listed on IDEAS
    2. Yip, Tsz Leung & Sun, Xin Yu & Liu, John J., 2011. "Group and individual heterogeneity in a stochastic frontier model: Container terminal operators," European Journal of Operational Research, Elsevier, vol. 213(3), pages 517-525, September.
    3. Fang, Lei, 2015. "Centralized resource allocation based on efficiency analysis for step-by-step improvement paths," Omega, Elsevier, vol. 51(C), pages 24-28.
    4. Trujillo, Lourdes & González, María Manuela & Jiménez, Juan Luis, 2013. "An overview on the reform process of African ports," Utilities Policy, Elsevier, vol. 25(C), pages 12-22.
    5. repec:eee:tefoso:v:131:y:2018:i:c:p:18-30 is not listed on IDEAS
    6. Georges Assaf, A. & Gillen, David, 2012. "Measuring the joint impact of governance form and economic regulation on airport efficiency," European Journal of Operational Research, Elsevier, vol. 220(1), pages 187-198.
    7. repec:pal:marecl:v:20:y:2018:i:2:d:10.1057_s41278-017-0074-8 is not listed on IDEAS
    8. Jaehun Park & Si-Il Sung, 2016. "Integrated Approach to Construction of Benchmarking Network in DEA-Based Stepwise Benchmark Target Selection," Sustainability, MDPI, Open Access Journal, vol. 8(7), pages 1-15, June.

    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:ejores:v:201:y:2010:i:2:p:568-580. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/eor .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.