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Integrated Approach to Construction of Benchmarking Network in DEA-Based Stepwise Benchmark Target Selection

Author

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  • Jaehun Park

    (Quality Management Operation Department, Defense Agency for Technology and Quality, 420 Dongjin-ro, Jinju-si, Gyeongsangnam-do 660-031, Korea)

  • Si-Il Sung

    (Quality Management Operation Department, Defense Agency for Technology and Quality, 420 Dongjin-ro, Jinju-si, Gyeongsangnam-do 660-031, Korea)

Abstract

Stepwise benchmark target selection in data envelopment analysis (DEA) is a realistic and effective method by which inefficient decision-making units (DMUs) can choose benchmarks in a stepwise manner. We propose, for the construction of a benchmarking network (i.e., a network structure consisting of an alternative sequence of benchmark targets), an approach that integrates the cross-efficiency DEA, K-means clustering and context-dependent DEA methods to minimize resource improvement pattern inconsistency in the selection of the intermediate benchmark targets (IBTs) of an inefficient DMU. The specific advantages and overall effectiveness of the proposed method were demonstrated by application to a case study of 34 actual container terminal ports and the successful determination of the stepwise benchmarking path of an inefficient DMU.

Suggested Citation

  • Jaehun Park & Si-Il Sung, 2016. "Integrated Approach to Construction of Benchmarking Network in DEA-Based Stepwise Benchmark Target Selection," Sustainability, MDPI, vol. 8(7), pages 1-15, June.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:7:p:600-:d:72847
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    References listed on IDEAS

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    1. Lozano, Sebastián & Calzada-Infante, Laura, 2018. "Computing gradient-based stepwise benchmarking paths," Omega, Elsevier, vol. 81(C), pages 195-207.
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    3. 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.
    4. Shih-Heng Yu & Yu Gao & Yih-Chearng Shiue, 2017. "A Comprehensive Evaluation of Sustainable Development Ability and Pathway for Major Cities in China," Sustainability, MDPI, vol. 9(8), pages 1-15, August.

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