A New Approach for Ranking Efficient Units in Data Envelopment Analysis and Application to a Sample of Vietnamese Agricultural Bank Branches

Abstract

This paper proposes a new approach for ranking efficiency units in data envelopment analysis as a modification of the super-efficiency models developed by Tone [1]. The new approach based on slacks-based measure of efficiency (SBM) for dealing with objective function used to classify all of the decision-making units allows the ranking of all inefficient DMUs and overcomes the disadvantages of infeasibility. This method also is applied to rank super-efficient scores for the sample of 145 agricultural bank branches in Viet Nam during 2007-2010. We then compare the estimated results from the new SCI model and the exsisting SBM model by using some statistical tests.

Integrated Simulation Modeling of Business, Maintenance and Production Systems for Concurrent Improvement of Lead Time, Cost and Production Rate

“…Adler et al (2002) have reviewed the ranking methods in the DEA. Also, some researchers have attempted to improve and develop the DEA model (Meilin et al, 2010;Minh et al, 2012;Tone, 2002;Liu and Tsai, 2004;Anderson and Peterson, 1993). There are two different approaches in the DEA: input-oriented approach (the inputs are decision variables Vol 15, No 4, December 2016, pp.403-431, © 2016 and the outputs are constant and pre-determined) and output-oriented approach (the inputs are constant and outputs are decision variables).…”

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“…It is concluded by [33] that the super-efficiency scores of DMUs enables us to distinguish between the efficient observations. On the other hand, another approach for ranking inefficient DMUs is proposed in [34] to overcome the issues caused by unfeasibility, as a modification of the earlier super-efficiency models. In addition, Ebadi [35] proposes variable returns to scale (VRS) super-efficiency models using input-output orientation, while Salhieh and Al-Harris [36] recommend a super-efficiency model for further discrimination between product concepts.…”

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