IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Imprecise data envelopment analysis for the two-stage process

  • HATAMI-MARBINI, Adel

    ()

    (Université catholique de Louvain, CORE and Louvain School of Management, Belgium)

  • AGRELL, Per

    ()

    (Université catholique de Louvain, CORE and Louvain School of Management, Belgium)

  • AGHAYI, Nazila

    ()

    (Islamic Azad University, Tehran, Iran)

The aggregate black-box approach of conventional Data Envelopment Analysis (DEA) limits its usefulness in situations where the observation is the result of independent decision making in sub-units (sub-DMUs), sequentially linked through processes or semi-finished products. The situation is commonly found in e.g supply chain management, health care provision and environmental management (waste water treatment). Alternative approaches for sublevel evaluations include two-stage or multi-stage models, where intermediate outputs or inputs are identified to span local production possibility spaces. However, the reliance upon numeric values for such intermediate inputs or outputs adds an additional difficulty that may lower the value of the assessment. In this paper, we present an approach for two-stage evaluation with interval data to resolve this problem. The results show that ignoring the interval quality of the data leads to distorted evaluations, both for the subunit and the system efficiency. The proposed method obtains an efficiency interval consisting in an upper and a lower bound for the system efficiency and the sub-DMU efficiency. In order to link two stages, we consider the interval intermediate measures that are outputs and inputs for the first stage and the second stage, respectively. The derived interval metric, along with its mean, provides a more informative basis for multi-stage evaluation in the presence of imprecise data. The ranks of DMUs and sub-DMUs are obtained based on their interval efficiencies.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://uclouvain.be/cps/ucl/doc/core/documents/coredp2013_4web.pdf
Download Restriction: no

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2013004.

as
in new window

Length:
Date of creation: 22 Feb 2013
Date of revision:
Handle: RePEc:cor:louvco:2013004
Contact details of provider: Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Phone: 32(10)474321
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Despotis, Dimitris K. & Smirlis, Yiannis G., 2002. "Data envelopment analysis with imprecise data," European Journal of Operational Research, Elsevier, vol. 140(1), pages 24-36, July.
  2. Chen, Yao & Liang, Liang & Zhu, Joe, 2009. "Equivalence in two-stage DEA approaches," European Journal of Operational Research, Elsevier, vol. 193(2), pages 600-604, March.
  3. Mostafaee, A. & Saljooghi, F.H., 2010. "Cost efficiency measures in data envelopment analysis with data uncertainty," European Journal of Operational Research, Elsevier, vol. 202(2), pages 595-603, April.
  4. repec:cup:cbooks:9780521887427 is not listed on IDEAS
  5. Kao, Chiang, 2006. "Interval efficiency measures in data envelopment analysis with imprecise data," European Journal of Operational Research, Elsevier, vol. 174(2), pages 1087-1099, October.
  6. Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 39-56.
  7. Chen, Yao & Cook, Wade D. & Li, Ning & Zhu, Joe, 2009. "Additive efficiency decomposition in two-stage DEA," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1170-1176, August.
  8. Hatami-Marbini, Adel & Emrouznejad, Ali & Tavana, Madjid, 2011. "A taxonomy and review of the fuzzy data envelopment analysis literature: Two decades in the making," European Journal of Operational Research, Elsevier, vol. 214(3), pages 457-472, November.
  9. SAATI, Saber & HATAMI-MARBINI, Adel & TAVANA, Madjid, . "A data envelopment analysis model with discretionary and non-discretionary factors in fuzzy environments," CORE Discussion Papers RP -2312, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  11. 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.
  12. William W. Cooper & Kyung Sam Park & Gang Yu, 1999. "IDEA and AR-IDEA: Models for Dealing with Imprecise Data in DEA," Management Science, INFORMS, vol. 45(4), pages 597-607, April.
  13. Park, K. Sam, 2010. "Duality, efficiency computations and interpretations in imprecise DEA," European Journal of Operational Research, Elsevier, vol. 200(1), pages 289-296, January.
  14. Chen, Yao & Cook, Wade D. & Zhu, Joe, 2010. "Deriving the DEA frontier for two-stage processes," European Journal of Operational Research, Elsevier, vol. 202(1), pages 138-142, April.
  15. Hougaard, Jens Leth, 1999. "Fuzzy scores of technical efficiency," European Journal of Operational Research, Elsevier, vol. 115(3), pages 529-541, June.
  16. Zhu, Joe, 2000. "Multi-factor performance measure model with an application to Fortune 500 companies," European Journal of Operational Research, Elsevier, vol. 123(1), pages 105-124, May.
  17. Duranton, Gilles & Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2010. "The Economics of Clusters: Lessons from the French Experience," OUP Catalogue, Oxford University Press, number 9780199592203, March.
  18. Zhu, Joe, 2003. "Efficiency evaluation with strong ordinal input and output measures," European Journal of Operational Research, Elsevier, vol. 146(3), pages 477-485, May.
  19. HATAMI-MARBINI, Adel & TAVANA, Madjid & EMROUZNEJAD, Ali & SAATI, Saber, . "Efficiency measurement in fuzzy additive data envelopment analysis," CORE Discussion Papers RP -2393, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  20. Kao, Chiang & Hwang, Shiuh-Nan, 2008. "Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan," European Journal of Operational Research, Elsevier, vol. 185(1), pages 418-429, February.
  21. Entani, Tomoe & Maeda, Yutaka & Tanaka, Hideo, 2002. "Dual models of interval DEA and its extension to interval data," European Journal of Operational Research, Elsevier, vol. 136(1), pages 32-45, January.
  22. SHOKOUHI, Amir H. & HATAMI-MARBINI, Adel & TAVANA, Madjid & SAATI, Saber, . "A robust optimization approach for imprecise data envelopment analysis," CORE Discussion Papers RP -2215, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  23. repec:cup:cbooks:9780521715348 is not listed on IDEAS
  24. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
  25. Zhu, Joe, 2003. "Imprecise data envelopment analysis (IDEA): A review and improvement with an application," European Journal of Operational Research, Elsevier, vol. 144(3), pages 513-529, February.
  26. Sadjadi, S.J. & Omrani, H., 2008. "Data envelopment analysis with uncertain data: An application for Iranian electricity distribution companies," Energy Policy, Elsevier, vol. 36(11), pages 4247-4254, November.
  27. HATAMI-MARBINI, Adel & SAATI, Saber & TAVANA, Madjid, . "Data envelopment analysis with fuzzy parameters: an interactive approach," CORE Discussion Papers RP -2329, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  28. Jens Leth Hougaard, 2004. "A Simple Approximation of Productivity Scores of Fuzzy Production Plans," Discussion Papers 04-24, University of Copenhagen. Department of Economics.
  29. HATAMI-MARBINI, Adel & TAVANA, Madjid & EBRAHIMI, Alireza, . "A fully fuzzified data envelopment analysis model," CORE Discussion Papers RP -2322, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  30. 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.
  31. Lawrence M. Seiford & Joe Zhu, 1999. "Profitability and Marketability of the Top 55 U.S. Commercial Banks," Management Science, INFORMS, vol. 45(9), pages 1270-1288, September.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2013004. 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: (Alain GILLIS)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.