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

Seyed Hossein Razavi Hajiagha, Hannan Amoozad Mahdiraji, Madjid Tavana

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1 Citation (Scopus)

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 languageEnglish
Article number106877
JournalMeasurement: Journal of the International Measurement Confederation
Volume147
Early online date31 Jul 2019
DOIs
Publication statusPublished - 1 Dec 2019
Externally publishedYes

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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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