Table Of ContentQuantitative Models for
Performance Evaluation and Benchmarking
Data Envelopment Analysis with Spreadsheets
Second Edition
INT. SERIES IN OPERATIONS RESEARCH & MANAGEMENT SCIENCE
Series Editor: Frederick S. Hillier, Stanford University
Special Editorial Consultant: Camille C. Price, Stephen F. Austin State University
Titles with an asterisk (*) were recommended by Dr. Price
Axsäter/ INVENTORY CONTROL, 2nd Ed.
Hall/ PATIENT FLOW: Reducing Delay in Healthcare Delivery
Józefowska & Węglarz/ PERSPECTIVES IN MODERN PROJECT SCHEDULING
Tian & Zhang/ VACATION QUEUEING MODELS: Theory and Applications
Yan, Yin & Zhang/ STOCHASTIC PROCESSES, OPTIMIZATION, AND CONTROL THEORY
APPLICATIONS IN FINANCIAL ENGINEERING, QUEUEING NETWORKS, AND
MANUFACTURING SYSTEMS
Saaty & Vargas/ DECISION MAKING WITH THE ANALYTIC NETWORK PROCESS: Economic,
Political, Social & Technological Applications w. Benefits, Opportunities, Costs & Risks
Yu/ TECHNOLOGY PORTFOLIO PLANNING AND MANAGEMENT: Practical Concepts and Tools
Kandiller/ PRINCIPLES OF MATHEMATICS IN OPERATIONS RESEARCH
Lee & Lee/ BUILDING SUPPLY CHAIN EXCELLENCE IN EMERGING ECONOMIES
Weintraub/ MANAGEMENT OF NATURAL RESOURCES: A Handbook of Operations Research Models,
Algorithms, and Implementations
Hooker/ INTEGRATED METHODS FOR OPTIMIZATION
Dawande et al/ THROUGHPUT OPTIMIZATION IN ROBOTIC CELLS
Friesz/ NETWORK SCIENCE, NONLINEAR SCIENCE and INFRASTRUCTURE SYSTEMS
Cai, Sha & Wong/ TIME-VARYING NETWORK OPTIMIZATION
Mamon & Elliott/ HIDDEN MARKOV MODELS IN FINANCE
del Castillo/ PROCESS OPTIMIZATION: A Statistical Approach
Józefowska/JUST-IN-TIME SCHEDULING: Models & Algorithms for Computer & Manufacturing
Systems
Yu, Wang & Lai/ FOREIGN-EXCHANGE-RATE FORECASTING WITH ARTIFICIAL NEURAL
NETWORKS
Beyer et al/ MARKOVIAN DEMAND INVENTORY MODELS
Shi & Olafsson/ NESTED PARTITIONS OPTIMIZATION: Methodology and Applications
Samaniego/ SYSTEM SIGNATURES AND THEIR APPLICATIONS IN ENGINEERING RELIABILITY
Kleijnen/ DESIGN AND ANALYSIS OF SIMULATION EXPERIMENTS
Førsund/ HYDROPOWER ECONOMICS
Kogan & Tapiero/ SUPPLY CHAIN GAMES: Operations Management and Risk Valuation
Vanderbei/ LINEAR PROGRAMMING: Foundations & Extensions, 3rd Edition
Chhajed & Lowe/ BUILDING INTUITION: Insights from Basic Operations Mgmt. Models and Principles
Luenberger & Ye/ LINEAR AND NONLINEAR PROGRAMMING, 3rd Edition
Drew et al/ COMPUTATIONAL PROBABILITY: Algorithms and Applications in the Mathematical
Sciences*
Chinneck/ FEASIBILITY AND INFEASIBILITY IN OPTIMIZATION: Algorithms and Computation
Methods
Tang, Teo & Wei/ SUPPLY CHAIN ANALYSIS: A Handbook on the Interaction of Information, System
and Optimization
Ozcan/ HEALTH CARE BENCHMARKING AND PERFORMANCE EVALUATION: An Assessment using
Data Envelopment Analysis (DEA)
Wierenga/ HANDBOOK OF MARKETING DECISION MODELS
Agrawal & Smith/ RETAIL SUPPLY CHAIN MANAGEMENT: Quantitative Models and Empirical
Studies
Brill/ LEVEL CROSSING METHODS IN STOCHASTIC MODELS
Zsidisin & Ritchie/ SUPPLY CHAIN RISK: A Handbook of Assessment, Management & Performance
Matsui/ MANUFACTURING AND SERVICE ENTERPRISE WITH RISKS: A Stochastic Management
Approach
~A list of the early publications in the series is found at the end of the book~
Quantitative Models for
Performance Evaluation and Benchmarking
Data Envelopment Analysis with Spreadsheets
Second Edition
Joe Zhu
Worcester Polytechnic Institute
USA
1 3
Joe Zhu
Worcester Polytechnic Institute
Worcester, MA, USA
jzhu@wpi.edu
ISSN: 0884-8289
ISBN-13: 978-0-387-85981-1 e-ISBN-13: 978-0-387-85982-8
DOI: 10.1007/978-0-387-85981-1
Library of Congress Control Number: 2008934031
© 2009 by Springer Science+Business Media, LLC
All rights reserved. This work may not be translated or copied in whole or in part without the written
permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York,
NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in
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are not identified as such, is not to be taken as an expression of opinion as to whether or not they are
subject to proprietary rights.
Printed on acid-free paper
springer.com
To Yao, Alec and Andie
Contents
Preface…………………………………………………………………...xi
Chapter 1 Envelopment DEA Models
1.1 Performance Evaluation, Tradeoffs, and DEA..............................1
1.2 Envelopment Model......................................................................5
1.3 Envelopment Models in Spreadsheets........................................14
1.4 Solving DEA Using DEAFrontier Software...............................35
References...............................................................................................41
Chapter 2 Multiplier and Slack-based Models
2.1 Multiplier Model with Weight Restrictions................................43
2.2 Multiplier Models in Spreadsheets..............................................45
2.3 Slack-based Model......................................................................51
2.4 Slack-based Models in Spreadsheets...........................................53
2.5 Solving DEA Using DEAFrontier Software...............................57
References...............................................................................................61
Chapter 3 Measure-specific DEA Models
3.1 Measure-specific Models............................................................63
3.2 Measure-specific Models in Spreadsheets..................................64
3.3 Performance Evaluation of Fortune 500 Companies..................66
3.4 Solving DEA Using DEAFrontier Software...............................75
References...............................................................................................76
viii Contents
Chapter 4 Non-radial DEA Models and DEA with Preference
4.1 Non-radial DEA Models.............................................................77
4.2 DEA with Preference Structure and Cost/Revenue Efficiency...79
4.3 DEA/Preference Structure Models in Spreadsheets....................83
4.4 DEA and Multiple Objective Linear Programming....................85
4.5 Solving DEA Using DEAFrontier Software...............................90
References...............................................................................................95
Chapter 5 Modeling Undesirable Measures
5.1 Introduction.............................................................................97
5.2 Efficiency Invariance..............................................................98
5.3 Undesirable Outputs...............................................................99
5.4 Undesirable Inputs................................................................103
5.5 Solving DEA Using DEAFrontier Software.........................104
Appendix: Negative Data......................................................................105
References.............................................................................................107
Chapter 6 Context-dependent Data Envelopment Analysis
6.1 Introduction...............................................................................109
6.2 Stratification DEA Method.......................................................111
6.3 Input-oriented Context-dependent DEA...................................115
6.4 Output-oriented Context-dependent DEA.................................123
6.5 Solving DEA Using DEAFrontier Software.............................127
References.............................................................................................129
Chapter 7 Benchmarking Models
7.1 Introduction...............................................................................131
7.2 Variable-benchmark Model......................................................132
7.3 Fixed-benchmark Model...........................................................143
7.4 Fixed-benchmark Model and Efficiency Ratio.........................146
7.5 Minimum Efficiency Model......................................................150
7.6 Buyer-seller Efficiency Model..................................................153
7.7 Solving DEA Using DEAFrontier Software.............................158
References.............................................................................................160
Chapter 8 Models for Evaluating Supply Chains
8.1 Supply Chain Efficiency...........................................................161
8.2 Supply Chain Efficiency...........................................................163
8.3 Cooperative and Non-Cooperative Approaches........................174
References.............................................................................................186
Performance Evaluation and Benchmarking ix
Chapter 9 Congestion
9.1 Congestion Measure..................................................................187
9.2 Congestion and Slacks..............................................................193
9.3 Slack-based Congestion Measure.............................................195
9.4 Solving DEA Using DEAFrontier Software.............................201
References.............................................................................................203
Chapter 10 Super Efficiency
10.1 Super-efficiency DEA Models..............................................205
10.2 Infeasibility of Super-efficiency DEA Models.....................209
10.3 Solving DEA Using DEAFrontier Software.........................223
References.............................................................................................225
Chapter 11 Sensitivity Analysis
11.1 DEA Sensitivity Analysis.........................................................227
11.2 Stability Region.........................................................................230
11.3 Infeasibility and Stability..........................................................242
11.4 Simultaneous Data Change.......................................................246
11.5 Solving DEA Using DEAFrontier Software.............................264
References.............................................................................................266
Chapter 12 Identifying Critical Measures in DEA
12.1 Introduction...............................................................................269
12.2 Performance Evaluation and DEA............................................269
12.3 Identifying Critical Output Measures........................................274
12.4 Identifying Critical Input Measures..........................................275
12.5 Numerical Example and Extension...........................................277
12.6 Application to Fortune E-Companies........................................278
References.............................................................................................287
Chapter 13 Returns-to-Scale
13.1 Introduction...............................................................................289
13.2 RTS Regions.............................................................................290
13.3 RTS Estimation.........................................................................291
13.4 Scale Efficient Targets..............................................................299
13.5 Solving DEA Using DEAFrontier Software.............................301
References.............................................................................................303
Chapter 14 DEA Models for Two-Stage Processes
14.1 Introduction...............................................................................305
14.2 VRS Two-Stage Model.............................................................306
x Contents
14.3 CRS Two-Stage Model.............................................................312
14.4 Solving DEA Using DEAFrontier Software.............................317
References.............................................................................................318
Author Index.........................................................................................319
Topic Index...........................................................................................323
