Integrated Approach to Construction of Benchmarking Network in DEA-Based Stepwise Benchmark Target Selection

Jaehun Park and Si-Il Sung
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Jaehun Park: Quality Management Operation Department, Defense Agency for Technology and Quality, 420 Dongjin-ro, Jinju-si, Gyeongsangnam-do 660-031, Korea
Si-Il Sung: Quality Management Operation Department, Defense Agency for Technology and Quality, 420 Dongjin-ro, Jinju-si, Gyeongsangnam-do 660-031, Korea

Sustainability, 2016, vol. 8, issue 7, 1-15

Abstract: Stepwise benchmark target selection in data envelopment analysis (DEA) is a realistic and effective method by which inefficient decision-making units (DMUs) can choose benchmarks in a stepwise manner. We propose, for the construction of a benchmarking network (i.e., a network structure consisting of an alternative sequence of benchmark targets), an approach that integrates the cross-efficiency DEA, K-means clustering and context-dependent DEA methods to minimize resource improvement pattern inconsistency in the selection of the intermediate benchmark targets (IBTs) of an inefficient DMU. The specific advantages and overall effectiveness of the proposed method were demonstrated by application to a case study of 34 actual container terminal ports and the successful determination of the stepwise benchmarking path of an inefficient DMU.

Keywords: data envelopment analysis (DEA); benchmarking network; efficiency; multi-criteria (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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