Modifying the interconnecting activities through an adjusted dynamic DEA model: a slacks-based measure approach

Saleh, Hilda; Shafiee, Morteza; Sanji, Mohammad

doi:10.22105/jarie.2020.229872.1163

Document Type : Research Paper

Authors

¹ Department of Mathematics, Faculty of Science, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

² Department of Industrial Management, Faculty of Economic and Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran.

https://doi.org/10.22105/jarie.2020.229872.1163

Abstract

A new approach to the dynamic Data Envelopment Analysis (DEA) referred to as the adjusted dynamic DEA, is proposed in this study. Adjusted dynamic DEA optimizes the production activity of DMUs by introducing adjustment variables to modify the interconnecting activities between consecutive terms, solving conflicts that arise between terms and between management and shareholders. The non-oriented Slack Based Model (SBM) is used as a base model and is extended to the adjusted dynamic framework, where adjustment variables are introduced. And also, in this paper, an attempt has been made to consider ratio data and extend traditional ratio DEA models to dynamic DEA-R model. In order to examine the applicability of the proposed method, the model is applied to evaluate the efficiency of ten branches of an Iranian bank during three consecutive terms. The adjusted dynamic SBM model under Variable Return to Scale (VRS) is solved and reference units for each inefficient DMU are identified. In addition, the slacks and adjustment variables are analyzed and further suggestions about the efficient conditions to the management are provided.

Keywords

Main Subjects

Data Envelopment Analysis, DEA

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Journal of Applied Research on Industrial Engineering

Modifying the interconnecting activities through an adjusted dynamic DEA model: a slacks-based measure approach

References

References

Volume 7, Issue 3
September 2020
Pages 287-300

Modifying the interconnecting activities through an adjusted dynamic DEA model: a slacks-based measure approach

References

References

Volume 7, Issue 3September 2020Pages 287-300

Volume 7, Issue 3
September 2020
Pages 287-300