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Showing 5 results for Cost Efficiency
Dr Jafar Pourmahmoud, Dr Naser Bafek Sharak,
Volume 11, Issue 1 (9-2020)
Abstract
Cost efficiency models evaluate the ability of decision-making units (DMUs) to produce current
outputs at minimal cost. In real applications, the observed values of the input-output data and
their corresponding input prices are imprecise and vague. This paper employs a fuzzy data
envelopment analysis (Fuzzy DEA) method to study cost efficiency of DMUs. In previous studies
on the cost efficiency, no attention has been paid to the issue of ranking problem in fuzzy
environment. In addition, adequate accuracy is ignored in regards to appropriate range of fuzzy
cost efficiency scores. In this study, the proposed method is applied to assess fuzzy cost efficiency
in accordance with the -level based approach. In this method, data information is considered
as triangular fuzzy numbers. The main idea is to convert the fuzzy DEA model into a family of
parametric crisp models to estimate the lower and upper bounds of the a-cut of the membership
functions of the cost efficiency measures. Moreover, the problem of ranking DMUs is investigated
based on the fuzzy cost efficiency, using a new method. Finally, the proposed method is illustrated
applying a numerical example, and then comparisons between the proposed method and previous
approaches are carried out.
Prof. Jafar Pourmahmoud, Dr Naser Kaheh,
Volume 13, Issue 1 (6-2022)
Abstract
In the traditional cost-efficiency model, the information about each decision unit includes inputs, outputs, and the input prices are fixed and specific. In practice, the price of the inputs often fluctuates at different times, and these prices for the decision-making unit are time-dependent. By the traditional method, the efficiency of decision units is impossible in the presence of time-dependent input prices. On the other hand, the exact method of cost-efficiency calculation is also difficult and time-consuming. In this study, a new method for calculating cost efficiency of decision making units with time-dependent prices during a period of time using numerical integral is presented. As the information of the decision-making units varies over time, a method for calculating their cost efficiency accurately is presented. however, the exact method is difficult or impossible to be solved in some cases. Therefore, in this study, an approximate method for calculating the cost efficiency in the given state is presented. This is a suitable replacement for the precise method. The efficiency of decision making units at different time is measured and the units are ranked using the proposed method. Finally, a numerical example is provided to indicate the method and compare it with the precise method. This study shows that the efficiency obtained by the approximate method is very close to the efficiency obtained by the exact method, and at the same time, the calculation speed increases.
Dr Farzaneh Asadi, Dr Sohrab Kordrostami, Dr Alireza Amirteimoori, Dr Morteza Bazrafshan,
Volume 13, Issue 1 (6-2022)
Abstract
Cost efficiency in which cost coefficients are given for some inputs (cost coefficients can be different for disparate decision-making units (DMUs)) is one of the most important concepts in data envelopment analysis (DEA) to analyze the performance. Moreover, in some occasions, the cost performance and changes of input measures should be addressed while the convexity property is violated. Therefore, in this paper, first a DEA model is provided to assess cost efficiency based on the free disposal hull (FDH) model. Then, by considering cost and technical efficiencies achieved, a multi-objective problem called the inverse FDH cost model is presented to determine input values based on output changes while the cost and technical efficiency levels are preserved. The multi-objective problem is computed applying two approaches. Also, a dataset from the literature is presented to show the performance of the proposed method. For this purpose, we used the data of six banks in different countries. We added 2% to the outputs and analyzed the inputs with two models. In the first model, we used cost coefficients for weights, and in the second model, we used the same weights. Contrary to forecasts, some entries have decreased and others have increased. But from the results, we have noticed that the first model is more realistic because most of the solutions have increased in this model.
Jafar Pourmahmoud,
Volume 14, Issue 1 (6-2023)
Abstract
In cost efficiency models, the capability of producing observed outputs of a target decision making unit (DMU) is evaluated by its minimum cost. Traditional cost efficiency models are considered for situations where data set is known for each DMU, while, some of them are imprecise in practice. Several studies have carried out to evaluate cost efficiency using fuzzy data envelopment analysis (DEA) methods for dealing with the imprecise data that have drawbacks. The issue of presenting improve strategy is ignored for inefficient units, as well as the applied models are not easily implemented. This paper proposes a new extension to evaluate fuzzy cost efficiency using fuzzy extended multiplication and division operations. This method offers a fully fuzzy model with triangular fuzzy input-output data along with triangular fuzzy input prices. In the proposed extension, a new definition of fuzzy cost efficiency is suggested based on the extended operations. Finally, a numerical example is provided to show the applicability of the proposed models.
Javad Gerami,
Volume 15, Issue 2 (12-2024)
Abstract
One of the ways to evaluate the performance of decision-making units (DMUs) such as banks and commercial companies is to use the concepts of economic efficiency in data envelopment analysis (DEA). In the process of evaluating the performance of the DMUs, it is important to apply the superior information of the decision maker (DM). In this paper, we obtain cost and revenue efficiency measurement models to evaluate DMUs based on the DM's opinion. In this regard, we use the method of production trade-offs in DEA. Using the production trade-off method, we apply the importance of inputs and outputs to the efficiency measurement process based on the opinion of the DM. We assumed that the cost (price) of each input (output) is different for different DMUs. We present the efficiency scores and efficient targets corresponding to the DMUs. We present an application of the presented models in the banking sector and present the results of the paper.
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