A new bi-level data envelopment analysis model for efficiency measurement and target setting
Data envelopment analysis (DEA) is a well-known and widely used method for performance evaluation in a set of homogeneous units. We propose a new bi-level DEA model for efficiency measurement and target setting. The fundamental novelty of the proposed model is threefold. We: (1) set both efficiency and profit concurrently as targets; (2) limit the amount of changes in the inputs and outputs to prevent unachievable targets; and (3) predict some targets for efficient units beyond the inefficient ones. We present a case study in the banking industry to demonstrate the efficacy of efficiency measurement and target setting in the proposed models.
Hajiagha, Seyed Hossein Razavi; Mahdiraji, Hannan Amoozad; and Tavana, Madjid, "A new bi-level data envelopment analysis model for efficiency measurement and target setting" (2019). Business Systems and Analytics Faculty Work. 66.
Razavi Hajiagha, S.H., Amoozad Mahdiraji, H. and Tavana, M. (2019) ‘A New Bi-Level Data Envelopment Analysis Model for Efficiency Measurement and Target Setting,’ Measurement, Vol. 147.