A new bi-level data envelopment analysis model for efficiency measurement and target setting

Seyed Hossein Razavi Hajiagha; Hannan Amoozad Mahdiraji; Madjid Tavana

doi:10.1016/j.measurement.2019.106877

A new bi-level data envelopment analysis model for efficiency measurement and target setting

Seyed Hossein Razavi Hajiagha, Hannan Amoozad Mahdiraji, Madjid Tavana

Research output: Contribution to journal › Article › peer-review

11 Citations (Scopus)

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Abstract

Data envelopment analysis (DEA) is a well-known and widely used method for performance evaluation in a set of homogeneous units. We propose a new bi-level DEA model for efficiency measurement and target setting. The fundamental novelty of the proposed model is threefold. We: (1) set both efficiency and profit concurrently as targets; (2) limit the amount of changes in the inputs and outputs to prevent unachievable targets; and (3) predict some targets for efficient units beyond the inefficient ones. We present a case study in the banking industry to demonstrate the efficacy of efficiency measurement and target setting in the proposed models.

Original language	English
Article number	106877
Journal	Measurement: Journal of the International Measurement Confederation
Volume	147
Early online date	31 Jul 2019
DOIs	https://doi.org/10.1016/j.measurement.2019.106877
Publication status	Published - 1 Dec 2019
Externally published	Yes

Keywords

Benchmarking
Bi-level programming
Data envelopment analysis
Efficiency planning
Target setting

ASJC Scopus subject areas

Instrumentation
Electrical and Electronic Engineering

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10.1016/j.measurement.2019.106877

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title = "A new bi-level data envelopment analysis model for efficiency measurement and target setting",

abstract = "Data envelopment analysis (DEA) is a well-known and widely used method for performance evaluation in a set of homogeneous units. We propose a new bi-level DEA model for efficiency measurement and target setting. The fundamental novelty of the proposed model is threefold. We: (1) set both efficiency and profit concurrently as targets; (2) limit the amount of changes in the inputs and outputs to prevent unachievable targets; and (3) predict some targets for efficient units beyond the inefficient ones. We present a case study in the banking industry to demonstrate the efficacy of efficiency measurement and target setting in the proposed models.",

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AU - Amoozad Mahdiraji, Hannan

AU - Tavana, Madjid

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N2 - Data envelopment analysis (DEA) is a well-known and widely used method for performance evaluation in a set of homogeneous units. We propose a new bi-level DEA model for efficiency measurement and target setting. The fundamental novelty of the proposed model is threefold. We: (1) set both efficiency and profit concurrently as targets; (2) limit the amount of changes in the inputs and outputs to prevent unachievable targets; and (3) predict some targets for efficient units beyond the inefficient ones. We present a case study in the banking industry to demonstrate the efficacy of efficiency measurement and target setting in the proposed models.

AB - Data envelopment analysis (DEA) is a well-known and widely used method for performance evaluation in a set of homogeneous units. We propose a new bi-level DEA model for efficiency measurement and target setting. The fundamental novelty of the proposed model is threefold. We: (1) set both efficiency and profit concurrently as targets; (2) limit the amount of changes in the inputs and outputs to prevent unachievable targets; and (3) predict some targets for efficient units beyond the inefficient ones. We present a case study in the banking industry to demonstrate the efficacy of efficiency measurement and target setting in the proposed models.

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KW - Bi-level programming

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KW - Efficiency planning

KW - Target setting

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JO - Measurement: Journal of the International Measurement Confederation

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A new bi-level data envelopment analysis model for efficiency measurement and target setting

Abstract

Keywords

ASJC Scopus subject areas

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