Cost Efficiency Measurement in Data Envelopment Analysis with Dynamic Network Structures: A Relational Model

Soheila Seyedboveir (), Sohrab Kordrostami, Behrouz Daneshian () and Alireza Amirteimoori ()
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Soheila Seyedboveir: Department of Mathematics, Lahijan Branch, Islamic Azad University, PB 1616, Lahijan, Iran
Sohrab Kordrostami: Department of Mathematics, Lahijan Branch, Islamic Azad University, PB 1616, Lahijan, Iran
Behrouz Daneshian: Department of Mathematics, Central Tehran Branch, Islamic Azad University, PB 13185/768, Tehran, Iran
Alireza Amirteimoori: Department of Applied Mathematics, Rasht Branch, Islamic Azad University, PB 3516 -41335, Pole Taleshan, Rasht, Iran

Asia-Pacific Journal of Operational Research (APJOR), 2017, vol. 34, issue 05, 1-13

Abstract: The “Dynamic-network” version of cost efficiency measurement in Data Envelopment Analysis (DEA) is proposed in this paper. The classical DEA models ignore operations of individual processes within a system; moreover, they compute efficiency at the same time. Therefore, we suggest a relational model to estimate cost efficiency in static network structures. Also, we incorporate the dynamic effect in network structures. The proposed models here evaluate the overall efficiency over the whole periods and indicate it as a weighted average of period efficiencies. The main advantage revealed in this study is recognition of: which divisions at what periods caused the inefficiency of the system, the internal activities of the system over time, considered; moreover, the results obtained here is applicable in, improving the performance of the system. A case study of Iranian banking industry is used to show the applicability of the approach.

Keywords: DEA; Network-structures; cost efficiency; static network cost efficiency (SNCE); Dynamic Network Cost Efficiency (DNCE) (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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DOI: 10.1142/S0217595917500233

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