Recognizing strong and weak congestion slack based in data envelopment analysis

The common concept of congestion is that a decrease (increase) in one or more inputs of a decision making unit (DMU) causes an increase (decrease) in one or more outputs (Cooper, Gu, & Li, 2001a). So far several congestion approaches have been proposed in DEA (data envelopment analysis) literature by many authors, such as Fare's et al. (FGL), Brockett's et al. (BCSW), and Tone and Sahoo's congestion approaches (Fare, Grosskopf, & Lovell, 1985, 1994; Brockett, Cooper, Shin, & Wang, 1998; Tone & Sahoo, 2004). Tone and Sahoo's approach (Tone & Sahoo, 2004) is one of the most robust congestion approaches in DEA literature. Moreover, Tone and Sahoo's approach has some advantages with respect to FGL and BSCW congestion approaches. However, the proposed approaches have many difficulties to treat congestion. For instance, in the presence of alternative optimal solutions, the approach proposed by Tone and Sahoo is unable to detect congestion (strong and weak). Moreover, in Tone and Sahoo's approach, all inputs and outputs of decision making units (DMUs) have been considered positive, while in real world, data is often non-negative. In this research, a slack-based DEA approach is proposed to recognize congestion (strong and weak) for the target DMUs. One of the advantages of our proposed approach is capable of detecting congestion (strong and weak) for evaluating the DMUs in the presence of alternative optimal solutions. Other advantage of our research is capable of identifying congesting (strong and weak) DMUs with non-negative inputs and outputs. However in these situations, Tone and Sahoo's congestion approach is incapable of identifying congestion. Lastly, we apply the approach to the data sets for making comparisons between the proposed approach and Tone and Sahoo's approach then some conclusions are drawn and directions for future research are suggested.

[1]  Kazuyuki Sekitani,et al.  DEA congestion and returns to scale under an occurrence of multiple optimal projections , 2009, Eur. J. Oper. Res..

[2]  M. Khodabakhshi,et al.  An input relaxation measure of efficiency in stochastic data envelopment analysis , 2009 .

[3]  Peng Jiang,et al.  Weight determination in the cross-efficiency evaluation , 2011, Comput. Ind. Eng..

[4]  F. Hosseinzadeh Lotfi,et al.  Estimating most productive scale size with imprecise-chance constrained input-output orientation model in data envelopment analysis , 2012, Comput. Ind. Eng..

[5]  Abraham Charnes,et al.  Measuring the efficiency of decision making units , 1978 .

[6]  Gholam Reza Jahanshahloo,et al.  Suitable combination of inputs for improving outputs in DEA with determining input congestion: Considering textile industry of China , 2004, Appl. Math. Comput..

[7]  F. Hosseinzadeh Lotfi,et al.  A new method for measuring congestion in data envelopment analysis , 2010 .

[8]  Mohsen Rostamy-Malkhalifeh,et al.  A comment on "A fuzzy DEA/AR approach to the selection of flexible manufacturing systems" , 2009, Comput. Ind. Eng..

[9]  William W. Cooper,et al.  Chapter 1 Introduction: Extensions and new developments in DEA , 1996, Ann. Oper. Res..

[10]  R. Färe,et al.  The measurement of efficiency of production , 1985 .

[11]  Rolf Färe,et al.  Production Frontiers: Introduction , 1993 .

[12]  William W. Cooper,et al.  A ONE-MODEL APPROACH TO CONGESTION IN DATA ENVELOPMENT ANALYSIS , 2002 .

[13]  William W. Cooper,et al.  Comparisons and evaluations of alternative approaches to the treatment of congestion in DEA , 2001, Eur. J. Oper. Res..

[14]  Tsung-Sheng Chang,et al.  Optimal profit-maximizing system design data envelopment analysis models , 2011, Comput. Ind. Eng..

[15]  Kim Fung Lam,et al.  Minimizing deviations of input and output weights from their means in data envelopment analysis , 2011, Comput. Ind. Eng..

[16]  Gholam R. Amin,et al.  Threshold value for the number of cells in group technology , 2002 .

[17]  G. C. Pentzaropoulos,et al.  Evaluating the relative operational efficiency of large-scale computer networks : an approach via data envelopment analysis , 1995 .

[18]  Cheng-Li Chen,et al.  The worst-practice DEA model with slack-based measurement , 2009, Comput. Ind. Eng..

[19]  Shiang-Tai Liu,et al.  A fuzzy DEA/AR approach to the selection of flexible manufacturing systems , 2008, Comput. Ind. Eng..

[20]  R. Färe,et al.  Congestion of Production Factors , 1980 .

[21]  Sebastián Lozano,et al.  Application of centralised DEA approach to capital budgeting in Spanish ports , 2011, Comput. Ind. Eng..

[22]  W. Cooper,et al.  Using DEA to improve the management of congestion in Chinese industries (1981-1997) , 2001 .

[23]  M. Khodabakhshi,et al.  A one-model approach based on relaxed combinations of inputs for evaluating input congestion in DEA , 2009 .

[24]  William W. Cooper,et al.  Note: Alternative treatments of congestion in DEA - a response to the Cherchye, Kuosmanen and Post critique , 2001, Eur. J. Oper. Res..

[25]  Timo Kuosmanen,et al.  Alternative treatments of congestion in DEA: A rejoinder to Cooper, Gu, and Li , 2001, Eur. J. Oper. Res..

[26]  Zaifang Zhang,et al.  An integrated approach for rating engineering characteristics' final importance in product-service system development , 2010, Comput. Ind. Eng..

[27]  Kaoru Tone,et al.  Degree of scale economies and congestion: A unified DEA approach , 2002, Eur. J. Oper. Res..

[28]  William W. Cooper,et al.  Slacks and congestion: response to a comment by R. Färe and S. Grosskopf☆ , 2001 .

[29]  W. Cooper,et al.  A unified additive model approach for evaluating inefficiency and congestion with associated measures in DEA , 2000 .

[30]  A. Charnes,et al.  Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis , 1984 .

[31]  R. Färe,et al.  Measuring congestion in production , 1983 .

[32]  Rolf Färe,et al.  Congestion: a note , 1998 .

[33]  William W. Cooper,et al.  Inefficiency and Congestion in Chinese Production Before and after the 1978 Economic Reforms , 1998 .

[34]  William W. Cooper,et al.  EXTENSIONS AND NEW DEVELOPMENTS IN DEA , 1996 .

[35]  Jun Liu,et al.  An integrated AHP-DEA methodology for bridge risk assessment , 2008, Comput. Ind. Eng..