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Article
Publication date: 28 June 2022

Peter Wanke, Sahar Ostovan, Mohammad Reza Mozaffari, Javad Gerami and Yong Tan

This paper aims to present two-stage network models in the presence of stochastic ratio data.

Abstract

Purpose

This paper aims to present two-stage network models in the presence of stochastic ratio data.

Design/methodology/approach

Black-box, free-link and fix-link techniques are used to apply the internal relations of the two-stage network. A deterministic linear programming model is derived from a stochastic two-stage network data envelopment analysis (DEA) model by assuming that some basic stochastic elements are related to the inputs, outputs and intermediate products. The linkages between the overall process and the two subprocesses are proposed. The authors obtain the relation between the efficiency scores obtained from the stochastic two stage network DEA-ratio considering three different strategies involving black box, free-link and fix-link. The authors applied their proposed approach to 11 airlines in Iran.

Findings

In most of the scenarios, when alpha in particular takes any value between 0.1 and 0.4, three models from Charnes, Cooper, and Rhodes (1978), free-link and fix-link generate similar efficiency scores for the decision-making units (DMUs), While a relatively higher degree of variations in efficiency scores among the DMUs is generated when the alpha takes the value of 0.5. Comparing the results when the alpha takes the value of 0.1–0.4, the DMUs have the same ranking in terms of their efficiency scores.

Originality/value

The authors innovatively propose a deterministic linear programming model, and to the best of the authors’ knowledge, for the first time, the internal relationships of a two-stage network are analyzed by different techniques. The comparison of the results would be able to provide insights from both the policy perspective as well as the methodological perspective.

Details

Journal of Modelling in Management, vol. 18 no. 3
Type: Research Article
ISSN: 1746-5664

Keywords

Book part
Publication date: 31 May 2016

Carlos Pestana Barros and Peter Wanke

This chapter analyses the efficiency of African airlines using a two-stage network DEA (Data Envelopment Analysis) model. Network DEA models usually take into account the…

Abstract

This chapter analyses the efficiency of African airlines using a two-stage network DEA (Data Envelopment Analysis) model. Network DEA models usually take into account the production process with intermediate inputs derived from the first stage and a second stage that departs from it. This fundamental feature enables one to view the airline production process as a carry-over activity. The analysis covers the 2010–2013 period. The relative efficiency ranks are presented and policy implications are derived.

Details

Airline Efficiency
Type: Book
ISBN: 978-1-78560-940-4

Keywords

Open Access
Article
Publication date: 9 December 2022

Jae-Dong Hong

The recent COVID-19 outbreak and severe natural disasters make the design of the humanitarian supply chain network (HSCN) a crucial strategic issue in a pre-disaster scenario. The…

Abstract

Purpose

The recent COVID-19 outbreak and severe natural disasters make the design of the humanitarian supply chain network (HSCN) a crucial strategic issue in a pre-disaster scenario. The HSCN design problem deals with the location/allocation of emergency response facilities (ERFs). This paper aims to propose and demonstrate how to design an efficient HSCN configuration under the risk of ERF disruptions.

Design/methodology/approach

This paper considers four performance measures simultaneously for the HSCN design by formulating a weighted goal programming (WGP) model. Solving the WGP model with different weight values assigned to each performance measure generates various HSCN configurations. This paper transforms a single-stage network into a general two-stage network, treating each HSCN configuration as a decision-making unit with two inputs and two outputs. Then a two-stage network data envelopment analysis (DEA) approach is applied to evaluate the HSCN schemes for consistently identifying the most efficient network configurations.

Findings

Among various network configurations generated by the WGP, the single-stage DEA model does not consistently identify the top-ranked HSCN schemes. In contrast, the proposed transformation approach identifies efficient HSCN configurations more consistently than the single-stage DEA model. A case study demonstrates that the proposed transformation method could provide a more robust and consistent evaluation for designing efficient HSCN systems. The proposed approach can be an essential tool for federal and local disaster response officials to plan a strategic design of HSCN.

Originality/value

This study presents how to transform a single-stage process into a two-stage network process to apply the general two-stage network DEA model for evaluating various HSCN configurations. The proposed transformation procedure could be extended for designing some supply chain systems with conflicting performance metrics more effectively and efficiently.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 13 no. 1
Type: Research Article
ISSN: 2042-6747

Keywords

Article
Publication date: 11 February 2019

Shahrooz Fathi Ajirlo, Alireza Amirteimoori and Sohrab Kordrostami

The purpose of this paper is to propose a modified model in multi-stage processes when there are intermediate measures between the stages and in this sense, the new efficiency…

Abstract

Purpose

The purpose of this paper is to propose a modified model in multi-stage processes when there are intermediate measures between the stages and in this sense, the new efficiency scores are more accurate. Conventional data envelopment analysis (DEA) models disregard the internal structures of peer decision-making units (DMUs) in evaluating their relative efficiency. Such an approach would cause managers to lose important DMU information. Therefore, in multistage processes, traditional DEA models encounter problems when intermediate measures are used for efficiency evaluation.

Design/methodology/approach

In this study, two-stage additive integer-valued DEA models were proposed. Three models were proposed for measuring inefficiency slacks in each stage and in the system as a whole.

Findings

Three models were proposed for measuring inefficiency slacks in each stage and in the system as a whole.

Originality/value

The advantage of the proposed models for multi-stage systems is that they can accurately determine the stages with the greatest weaknesses/strengths. By introducing an applied case in the Iranian power industry, the paper demonstrated the applications and advantages of the proposed models.

Details

Journal of Modelling in Management, vol. 14 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 30 August 2021

Seyed Mohamad Fakhr Mousavi, Alireza Amirteimoori, Sohrab Kordrostami and Mohsen Vaez-Ghasemi

As returns to scale (RTS) describes the long run connection of the changes of outputs relative to increases in the inputs, the purpose of this study is to answer the following…

Abstract

Purpose

As returns to scale (RTS) describes the long run connection of the changes of outputs relative to increases in the inputs, the purpose of this study is to answer the following questions: If the proportionate changes exist in the inputs, what is the rate of changes in outputs with respect to the inputs’ variations in the two-stage networks over the long term? How can the authors investigate quantitative RTS in the two-stage networks? In other words, the purpose of this research is to introduce a different approach to estimate the performance, RTS and scale economies (SE) in network structures.

Design/methodology/approach

This paper proposes a novel non-radial approach based on data envelopment analysis to analyze the performance and to investigate RTS and SE in two-stage processes.

Findings

The findings show that the range adjusted measure (RAM)/RTS approach can identify reference sets for overall systems and each stage. In addition, the models presented in this paper can classify decision-making units and determine the increasing/decreasing trends of RTS.

Originality/value

The majority of previous RTS studies have been examined in black-box structures and have been discussed in a radial framework. Therefore, in this study, RTS and SE in the two-stage networks are dealt with using an extended RAM approach. Actually, the efficiency and RTS for each stage and the overall model are calculated using the proposed technique.

Details

Journal of Modelling in Management, vol. 18 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 21 December 2021

Adel Achi

The purpose of this paper is to evaluate the efficiency of Algerian banks and examine the effects of explanatory factors on their performance.

Abstract

Purpose

The purpose of this paper is to evaluate the efficiency of Algerian banks and examine the effects of explanatory factors on their performance.

Design/methodology/approach

In this paper, a methodology of two-stage network data envelopment analysis (DEA) is used to explore the efficiency of a sample of 13 Algerian banks during the 2013–2017 period. In the first stage, the network DEA is used to assess the overall and stages efficiencies. In the second stage, the partial least squares (PLS) regression is conducted to determine the potential effects of explanatory factors on stages efficiency.

Findings

The main empirical results indicate that Algerian banks need an efficiency improvement in both stages. The overall efficiency of the Algerian banking system improves over the study period. The deposit producing efficiency is positively affected by bank size and bank age. The revenue earning efficiency is negatively associated with bank size and bank age. The domestic banks are more efficient than foreign banks in the deposit producing stage and the foreign banks are more efficient than domestic banks in the revenue earning stage.

Practical implications

The results might be used as guidelines for both managers and policymakers in order to improve banks and banking system performance.

Originality/value

To the best of our knowledge, this study is the first that uses the DEA in investigating the efficiency of Algerian banks by dividing the overall efficiency into deposit producing and revenue earning efficiencies. Unlike most studies that have usually used OLS regression, Tobit regression and bootstrapped truncated regression, this study is the first in the bank efficiency literature that uses PLS regression to investigate the potential effect of explanatory variables on deposit producing and revenue earning efficiencies.

Details

International Journal of Productivity and Performance Management, vol. 72 no. 5
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 14 December 2023

Yasaman Zibaei Vishghaei, Sohrab Kordrostami, Alireza Amirteimoori and Soheil Shokri

Assessing inputs and outputs is a significant aspect of taking decisions while there are complex and multistage processes in many examinations. Due to the presence of interval…

Abstract

Purpose

Assessing inputs and outputs is a significant aspect of taking decisions while there are complex and multistage processes in many examinations. Due to the presence of interval performance measures in various real-world studies, the purpose of this study is to address the changes of interval inputs of two-stage processes for the perturbations of interval outputs of two-stage systems, given that the overall efficiency scores are maintained.

Design/methodology/approach

Actually, an interval inverse two-stage data envelopment analysis (DEA) model is proposed to plan resources. To illustrate, an interval two-stage network DEA model with external interval inputs and outputs and also its inverse problem are suggested to estimate the upper and lower bounds of the entire efficiency and the stages efficiency along with the variations of interval inputs.

Findings

An example from the literature and a real case study of the banking industry are applied to demonstrate the introduced approach. The results show the proposed approach is suitable to estimate the resources of two-stage systems when interval measures are presented.

Originality/value

To the best of the authors’ knowledge, there is no study to estimate the fluctuation of imprecise inputs related to network structures for the changes of imprecise outputs while the interval efficiency of network processes is maintained. Accordingly, this paper considers the resource planning problem when there are imprecise and interval measures in two-stage networks.

Details

Journal of Modelling in Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 10 March 2022

Vijyapu Prasanna Kumar and Sujata Kar

The main objective of this paper is to present a holistic approach for measuring overall bank efficiency and its decomposition in intermediation and profitability efficiencies.

Abstract

Purpose

The main objective of this paper is to present a holistic approach for measuring overall bank efficiency and its decomposition in intermediation and profitability efficiencies.

Design/methodology/approach

Two-stage network data envelopment analysis (NDEA) model has been used for obtaining intermediation and profitability efficiencies along with overall bank efficiency. Additionally, bootstrap truncated regression has also been adopted to explore the influential predictors of two stages.

Findings

A comparative analysis between Indian private-sector and public-sector banks showed that the former is efficient than the latter in profitability efficiency stage. Another interesting finding is that none of the banks is efficient in overall study tenure. Finally, outcomes of bootstrap truncated regression show that differences in intermediation efficiency are explained by firm size, return on asset, market share and ownership while profitability stage is determined by diverse, gross domestic product and ownership.

Research limitations/implications

This study will guide the Indian banking sector to act on which they are lagging, for the betterment of their overall performances. Finally, parameters like loan waives and disposal income of non-performing assets (NPAs) are not considered because of the unavailability of information in the output measures of NDEA model.

Originality/value

This paper not only provides a detailed performance assessment of Indian banks but also examines banks’ internal efficiency by deposits as an intermediary measure.

Details

Benchmarking: An International Journal, vol. 30 no. 2
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 30 July 2021

Amit Prakash Jha and Sanjay Kumar Singh

The Indian power sector is dominated by coal. Environmental awareness and advances in techno-economic front have led to a slow but steady shift towards greener alternatives. The…

Abstract

Purpose

The Indian power sector is dominated by coal. Environmental awareness and advances in techno-economic front have led to a slow but steady shift towards greener alternatives. The distributions of both fossil fuel resources and renewable energy potential are not uniform across the states. Paper attempts to answer how the states are performing in the sector and how the renewable energy and conventional resources are affecting the dynamics.

Design/methodology/approach

The authors employ a two-stage data envelopment analysis (DEA) to rank the performance of Indian states in the power sector. Multi-stage analysis opens up the DEA black-box through disaggregating power sector in two logical sub-sectors. The performance is evaluated from the point-of-view of policy formulating and implementing agencies. Further, an econometric analysis using seemingly unrelated regression equations (SURE) is conducted to estimate the determinants of total and industrial per-capita electricity consumption.

Findings

Efficiency scores obtained from the first phase of analysis happens to be a significant explanatory variable for power consumption. The growth in electricity consumption, which is necessary for economic wellbeing, is positively affected by both renewable and non-renewable sources; but conventional sources have a larger impact on per-capita consumption. Yet, the share of renewables in the energy mix has positive elasticity. Hence, the findings are encouraging, because development in storage technologies, falling costs and policy interventions are poised to give further impetus to renewable sources.

Originality/value

The study is one of the very few where entire spectrum of the Indian power sector is evaluated from efficiency perspective. Further, the second phase analysis gives additional relevant insights on the sector.

Details

Benchmarking: An International Journal, vol. 29 no. 4
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 12 February 2018

Dujun Zhai, Minyue Jin, Jennifer Shang and Chenfeng Ji

The purpose of this paper is to apply data envelopment analysis (DEA) techniques to the collective decision-making environment to appraise two-stage production process under…

Abstract

Purpose

The purpose of this paper is to apply data envelopment analysis (DEA) techniques to the collective decision-making environment to appraise two-stage production process under different decision preferences.

Design/methodology/approach

The authors propose a novel multi-criteria group decision-making approach that uses consensus-strategic data envelopment analysis (CSDEA) to appraise two-stage production process under two different decision strategies, which are efficiency- and fairness-based group decision preferences.

Findings

The authors find that the proposed CSDEA model evaluates the performance of the decision-making units (DMUs) not by diminishing other competitors but rather based on group interests of the entire decision set.

Originality/value

The authors extend Li’s two-stage model to cases that consider both intermediate inputs and outputs. The authors address the issue of incorporating collective managerial strategy into multi-criteria group decision-making and propose a novel CSDEA model that considers not only the individual-level performance of a DMU but also the group-level or collective decision strategies.

Details

Journal of Modelling in Management, vol. 13 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

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