Network data envelopment analysis with two-level maximin strategy
RAIRO. Operations Research, Tome 56 (2022) no. 4, pp. 2543-2556

Network data envelopment analysis (NDEA), one of the most important branches of recent DEA developments, has been developed for examining the decision making units (DMUs) of a system with complex and internal component divisions. In this study we apply a maximin strategy to network DEA at two levels. At the individual DMU level, we evaluate the system’s performance by maximizing the minimum of the divisions efficiencies, which is based on the weak-link approach. At the all DMUs level, we evaluate the system’s performance by maximizing the minimum of the DMUs’ efficiencies, which is based on the maximin ratio efficiency model. With such two-level maximin strategy, we propose the two-level maximin NDEA model to evaluate efficiencies of all divisions as well as all DMUs at the same time. The model will provide unique and unbiased efficiency scores for all divisions in a system and improve incomparable efficiency scores and weak discrimination power of traditional DEA models. In addition, we discuss the cross efficiency evaluation based on the two-level maximin NDEA model. The proposed models are applied to the efficiency evaluation of supply chains for illustrations.

Reçu le :
Accepté le :
Première publication :
Publié le :
DOI : 10.1051/ro/2022090
Classification : 90B030
Keywords: Data envelopment analysis, weak-link approach, maximin efficiency ratio model, cross efficiency, supply chains
@article{RO_2022__56_4_2543_0,
     author = {Yang, Feng and Sun, Yu and Wang, Dawei and Ang, Sheng},
     title = {Network data envelopment analysis with two-level maximin strategy},
     journal = {RAIRO. Operations Research},
     pages = {2543--2556},
     year = {2022},
     publisher = {EDP-Sciences},
     volume = {56},
     number = {4},
     doi = {10.1051/ro/2022090},
     mrnumber = {4469504},
     language = {en},
     url = {https://www.numdam.org/articles/10.1051/ro/2022090/}
}
TY  - JOUR
AU  - Yang, Feng
AU  - Sun, Yu
AU  - Wang, Dawei
AU  - Ang, Sheng
TI  - Network data envelopment analysis with two-level maximin strategy
JO  - RAIRO. Operations Research
PY  - 2022
SP  - 2543
EP  - 2556
VL  - 56
IS  - 4
PB  - EDP-Sciences
UR  - https://www.numdam.org/articles/10.1051/ro/2022090/
DO  - 10.1051/ro/2022090
LA  - en
ID  - RO_2022__56_4_2543_0
ER  - 
%0 Journal Article
%A Yang, Feng
%A Sun, Yu
%A Wang, Dawei
%A Ang, Sheng
%T Network data envelopment analysis with two-level maximin strategy
%J RAIRO. Operations Research
%D 2022
%P 2543-2556
%V 56
%N 4
%I EDP-Sciences
%U https://www.numdam.org/articles/10.1051/ro/2022090/
%R 10.1051/ro/2022090
%G en
%F RO_2022__56_4_2543_0
Yang, Feng; Sun, Yu; Wang, Dawei; Ang, Sheng. Network data envelopment analysis with two-level maximin strategy. RAIRO. Operations Research, Tome 56 (2022) no. 4, pp. 2543-2556. doi: 10.1051/ro/2022090

[1] A. Abbas, M. Waseem and M. Yang, An ensemble approach for assessment of energy efficiency of agriculture system in Pakistan. Energ. Effic. 13 (2020) 683–696. | DOI

[2] Q. An, H. Chen, B. Xiong, J. Wu and L. Liang, Target intermediate products setting in a two-stage system with fairness concern. Omega 73 (2017) 49–59. | DOI

[3] S. Ang and C. M. Chen, Pitfalls of decomposition weights in the additive multi-stage DEA model. Omega 58 (2016) 139–153. | DOI

[4] M. Z. Angiz, A. Mustafa and M. J. Kamali, Cross-ranking of decision making units in data envelopment analysis. Appl. Math. Modell. 37 (2013) 398–405. | MR | DOI

[5] L. Castelli, R. Pesenti and W. Ukovich, A classification of DEA models when the internal structure of the decision making units is considered. Ann. Oper. Res. 173 (2010) 207–235. | MR | DOI

[6] A. Charnes and W. W. Cooper, Programming with linear fractional functionals. Nav. Res. Logistics Q. 9 (1962) 181–186. | MR | DOI

[7] A. Charnes and W. W. Cooper, Preface to topics in data envelopment analysis. Ann. Oper. Res. 2 (1984) 59–94. | DOI

[8] A. Charnes, W. W. Cooper and E. Rhodes, Measuring the efficiency of decision making units. Eur. J. Oper. Res. 2 (1978) 429–444. | MR | DOI

[9] Y. Chen, W. D. Cook, N. Li and J. Zhu, Additive efficiency decomposition in two-stage DEA. Eur. J. Oper. Res. 196 (2009) 1170–1176. | DOI

[10] M. Chen, S. Ang, F. Yang and L. Jiang, Efficiency evaluation of non-homogeneous DMUs with inconsistent input quality. Comput. Ind. Eng. 158 (2021) 107418. | DOI

[11] C. I. Chiang, M. J. Hwang and Y. H. Liu, Determining a common set of weights in a DEA problem using a separation vector. Math. Comput. Modell. 54 (2011) 2464–2470. | MR | DOI

[12] W. D. Cook and L. M. Seiford, Data envelopment analysis (DEA)–Thirty years on. Eur. J. Oper. Res. 192 (2009) 1–17. | MR | DOI

[13] W. D. Cook, J. Zhu, G. Bi and F. Yang. Network DEA: additive efficiency decomposition, Eur. J. Oper. Res. 207 (2010) 1122–1129. | DOI

[14] W. W. Cooper, K. S. Park and J. T. Pastor, RAM: a range adjusted measure of inefficiency for use with additive models, and relations to other models and measures in DEA. J. Prod. Anal. 11 (1999) 5–42. | DOI

[15] D. Despotis and D. Kuchta, Fuzzy weak link approach to the two-stage DEA. RAIRO: Oper. Res. 55 (2021) 385. | MR | Numdam | DOI

[16] D. K. Despotis, G. Koronakos and D. Sotiros, The “weak-link” approach to network DEA for two-stage processes. Eur. J. Oper. Res. 254 (2016) 481–492. | DOI

[17] D. K. Despotis, D. Sotiros and G. Koronakos, A network DEA approach for series multi-stage processes. Omega 61 (2016) 35–48. | DOI

[18] R. Färe and S. Grosskopf, Productivity and intermediate products: a frontier approach. Econ. Lett. 50 (1996) 65–70. | DOI

[19] H. Fukuyama and R. Matousek, Modelling bank performance: a network DEA approach. Eur. J. Oper. Res. 259 (2017) 721–732. | MR | DOI

[20] D. Gharakhani, A. T. Eshlaghy, K. F. Hafshejani, R. K. Mavi and F. H. Lotfi, Common weights in dynamic network DEA with goal programming approach for performance assessment of insurance companies in Iran. Manage. Res. Rev. (2018). DOI: . | DOI

[21] C. Guo, R. A. Shureshjani, A. A. Foroughi and J. Zhu, Decomposition weights and overall efficiency in two-stage additive network DEA. Eur. J. Oper. Res. 257 (2017) 896–906. | MR | DOI

[22] M. Izadikhah and R. F. Saen, Evaluating sustainability of supply chains by two-stage range directional measure in the presence of negative data. Transp. Res. Part D: Transp. Environ. 49 (2016) 110–126. | DOI

[23] G. R. Jahanshahloo, F. H. Lotfi, M. Khanmohammadi, M. Kazemimanesh and V. Rezaie, Ranking of units by positive ideal DMU with common weights. Expert Syst. App. 37 (2010) 7483–7488. | DOI

[24] C. Kao, Efficiency decomposition in network data envelopment analysis: a relational model. Eur. J. Oper. Res. 192 (2009) 949–962. | DOI

[25] C. Kao, Network Data Envelopment Analysis: a review. Eur. J. Oper. Res. 239 (2014) 1–16. | MR | DOI

[26] C. Kao, Network Data Envelopment Analysis: Foundations and Extensions. Springer, Berlin (2017). | MR | DOI

[27] C. Kao and S. N. Hwang, Efficiency decomposition in two-stage data envelopment analysis: an application to non-life insurance companies in Taiwan. Eur. J. Oper. Res. 185 (2008) 418–429. | DOI

[28] C. Kao and S. N. Hwang, Efficiency measurement for network systems: IT impact on firm performance. Decis. Support Syst. 48 (2010) 437–446. | DOI

[29] E. E. Karsak and M. Dursun, An integrated supplier selection methodology incorporating QFD and DEA with imprecise data. Expert Syst. App. 41 (2014) 6995–7004. | DOI

[30] K. Khalili-Damghani and M. Fadaei, A comprehensive common weights data envelopment analysis model: ideal and anti-ideal virtual decision making units approach. J. Ind. Syst. Eng. 11 (2018) 281–306.

[31] H. Kiaei and R. K. Matin, Common set of weights and efficiency improvement on the basis of separation vector in two-stage network data envelopment analysis. Math. Sci. 14 (2020) 53–65. | MR | DOI

[32] G. Koronakos, D. Sotiros and D. K. Despotis, Reformulation of Network Data Envelopment Analysis models using a common modelling framework. Eur. J. Oper. Res. 278 (2019) 472–480. | MR | DOI

[33] S. Kourtzidis, R. Matousek and N. G. Tzeremes, Modelling a multi-period production process: evidence from the Japanese regional banks. Eur. J. Oper. Res. 294 (2021) 327–339. | MR | DOI

[34] Y. Li, Y. Chen, L. Liang and J. Xie, DEA models for extended two-stage network structures. Omega 40 (2012) 611–618. | DOI

[35] F. Li, Q. Zhu, Z. Chen and H. Xue, A balanced data envelopment analysis cross-efficiency evaluation approach. Expert Syst. App. 106 (2018) 154–168. | DOI

[36] C. K. Lovell and J. T. Pastor, Units invariant and translation invariant DEA models. Oper. Res. Lett. 18 (1995) 147–151. | MR | DOI

[37] R. K. Mavi, R. F. Saen and M. Goh, Joint analysis of eco-efficiency and eco-innovation with common weights in two-stage network DEA: a big data approach. Technol. Forecasting Soc. Change 144 (2019) 553–562. | DOI

[38] M. Mehdiloozad, B. K. Sahoo and I. Roshdi, A generalized multiplicative directional distance function for efficiency measurement in DEA. Eur. J. Oper. Res. 232 (2014) 679–688. | MR | DOI

[39] P. C. Pendharkar, Cross efficiency evaluation of decision-making units using the maximum decisional efficiency principle. Comput. Ind. Eng. 145 (2020) 106550. | DOI

[40] S. H. Pishgar-Komleh, T. Zylowski, S. Rozakis and J. Kozyra, Efficiency under different methods for incorporating undesirable outputs in an LCA + DEA framework: a case study of winter wheat production in Poland. J. Environ. Manage. 260 (2020) 110138. | DOI

[41] S. Saati and N. Nayebi, An algorithm for determining common weights by concept of membership function. J. Linear Topol. Algebra (JLTA) 4 (2015) 165–172. | MR

[42] B. K. Sahoo, M. Mehdiloozad and K. Tone, Cost, revenue and profit efficiency measurement in DEA: a directional distance function approach. Eur. J. Oper. Res. 237 (2014) 921–931. | MR | DOI

[43] B. K. Sahoo, H. Saleh, M. Shafiee, K. Tone and J. Zhu, An Alternative Approach to Dealing with the Composition Approach for Series Network Production Processes. Asia-Pac. J. Oper. Res. 38 (2021) 2150004. | MR | DOI

[44] L. M. Seiford and J. Zhu, Profitability and marketability of the top 55 US commercial banks. Manage. Sci. 45 (1999) 1270–1288. | DOI

[45] D. Sotiros, G. Koronakos and D. K. Despotis, Dominance at the divisional efficiencies level in network DEA: the case of two-stage processes. Omega 85 (2019) 144–155. | DOI

[46] M. Toloo, M. Tavana and F. J. Santos-Arteaga, An integrated data envelopment analysis and mixed integer non-linear programming model for linearizing the common set of weights. Cent. Eur. J. Oper. Res. 27 (2019) 887–904. | MR | DOI

[47] K. Tone, A slacks-based measure of efficiency in data envelopment analysis. Eur. J. Oper. Res. 130 (2001) 498–509. | MR | DOI

[48] M. D. Troutt, Derivation of the maximin efficiency ratio model from the maximum decisional efficiency principle. Ann. Oper. Res. 73 (1997) 323–338. | DOI

[49] M. D. Troutt and T. W. Leung, Enhanced bisection strategies for the Maximin Efficiency Ratio model. Eur. J. Oper. Res. 144 (2003) 545–553. | MR | DOI

[50] G. Vlontzos and P. M. Pardalos, Assess and prognosticate green house gas emissions from agricultural production of EU countries, by implementing, DEA Window analysis and artificial neural networks. Renew. Sustain. Energy Rev. 76 (2017) 155–162. | DOI

[51] H. Wang, C. Pan, Q. Wang and P. Zhou, Assessing sustainability performance of global supply chains: an input-output modeling approach. Eur. J. Oper. Res. 285 (2020) 393–404. | DOI

[52] D. D. Wu, C. Luo and D. L. Olson, Efficiency evaluation for supply chains using maximin decision support. IEEE Trans. Syst. Man Cybern. Syst. 44 (2014) 1088–1097. | DOI

[53] D. Yang, J. R. Jiao, Y. Ji, G. Du, P. Helo and A. Valente, Joint optimization for coordinated configuration of product families and supply chains by a leader-follower Stackelberg game. Eur. J. Oper. Res. 246 (2015) 263–280. | MR | DOI

[54] Y. Zha and L. Liang, Two-stage cooperation model with input freely distributed among the stages. Eur. J. Oper. Res. 205 (2010) 332–338. | DOI

[55] L. Zhao, Q. Zhu and L. Zhang, Regulation adaptive strategy and bank efficiency: a network slacks-based measure with shared resources. Eur. J. Oper. Res. 295 (2021) 348–362. | MR | DOI

Cité par Sources :