Skip to main content
Log in

Integrating fuzzy goal programming and data envelopment analysis to incorporate preferred decision-maker targets in efficiency measurement

  • Published:
Decisions in Economics and Finance Aims and scope Submit manuscript

Abstract

Data envelopment analysis (DEA) is a nonparametric frontier assessment method used to evaluate the relative efficiency of similar decision-making units (DMUs). This method provides benchmarking information regarding the removal of inefficiency. In conventional DEA models, the view of the decision maker (DM) is ignored and the performance of each DMU is solely determined by the observations retrieved. The current paper exploits the structural similarity existing between DEA and multiple objective programming to define a model that incorporates the preferences of DMs in the evaluation process of DMUs. Given the potential unfeasibility of the input and output targets selected by the DM, the model defines an interactive procedure that considers minimum and maximum acceptable objective levels. Given the feasible levels located closer to the targets selected by the DM, a program improving upon the feasible allocations is designed so that the suggested benchmark approximates the requirements fixed by the DM as much as possible. A real-life case study is included to illustrate the efficacy and applicability of the proposed hybrid procedure.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Aparicio, J., Cordero, J.M., Pastor, J.T.: The determination of the least distance to the strongly efficient frontier in data envelopment analysis oriented models: modelling and computational aspects. Omega 71, 1–10 (2017)

    Article  Google Scholar 

  • Banker, R.D., Charnes, A., Cooper, W.W.: Some models for estimating technical and scale inefficiencies in data envelopment analysis. Manag. Sci. 30, 1078–1092 (1984)

    Article  Google Scholar 

  • Charnes, A., Cooper, W.W.: Polyhedral cone-ratio DEA models with an illustrative application to large commercial banking. J. Econom. 46, 73–79 (1990)

    Article  Google Scholar 

  • Charnes, A., Cooper, W.W., Rhodes, E.: Measuring efficiency of decision making units. Eur. J. Oper. Res. 2, 429–444 (1978)

    Article  Google Scholar 

  • Dyson, R., Thanassoulis, E.: Reducing weight flexibility in data envelopment analysis. J. Oper. Res. Soc. 39(6), 563–576 (1988)

    Article  Google Scholar 

  • Golany, B.: Interactive MOLP procedure for the extension if DEA to effectiveness analysis. J. Oper. Res. Soc. 39(8), 725–734 (1988)

    Article  Google Scholar 

  • Hosseinzadeh Lotfi, F., Jahanshahloo, G.R., Ebrahimnejad, A., Soltanifar, M., Mansourzadeh, S.M.: Target setting in the general combined-oriented CCR model using an interactive MOLP method. J. Comput. Appl. Math. 234, 1–9 (2010)

    Article  Google Scholar 

  • Joro, R., Korhonen, P., Wallenius, J.: Structural comparison of data envelopment analysis and multiple objective linear programming. Manag. Sci. 44(7), 962–970 (1999)

    Article  Google Scholar 

  • Lightner, M.R., Director, S.W.: Multiple criterion optimization for the design of electronic circuits. IEEE Trans. Circuits Syst. 28, 169–179 (1981)

    Article  Google Scholar 

  • Malekmohammadi, N., Hosseinzadeh Lotfi, F., Jaafar, A.B.: Target setting in data envelopment analysis using MOLP. Appl. Math. Model. 35, 328–338 (2011)

    Article  Google Scholar 

  • Mohamed, R.H.: The relationship between goal programming and fuzzy programming. Fuzzy Set Syst. 89, 215–222 (1997)

    Article  Google Scholar 

  • Mohammadi, S., Mirdehghan, S.M., Jahanshahloo, G.: Finding the most preferred decision-making unit in data envelopment analysis. Adv. Oper. Res. (2016) Article ID 7171467

  • Omrani, H., Alizadeh, A., Naghizadeh, F.: Incorporating decision makers’ preferences into DEA and common weight DEA models based on the best–worst method (BWM). Soft Comput. 24, 3989–4002 (2020)

    Article  Google Scholar 

  • Sheth, N.: Measuring and evaluating efficiency and effectiveness using goal programming and data envelopment analysis in a fuzzy environment. Doctoral dissertation. Virginia Tech (1999)

  • Sheth, N., Triantis, K.: Measuring and evaluating efficiency and effectiveness using goal programming and data envelopment analysis in a fuzzy environment. Yugosl. J. Oper. Res. 13, 35–60 (2003)

    Article  Google Scholar 

  • Steuer, R.E., Choo, E.U.: An interactive weighted Tchebycheff procedure for multiple objective programming. Math. Program. 26, 326–344 (1983)

    Article  Google Scholar 

  • Tavana, M., Ebrahimnejad, A., Santos-Arteaga, F.J., Mansourzadeh, S.M., Kazemi Matin, R.: A hybrid DEA-MOLP model for public school assessment and closure decision in the City of Philadelphia. Socio-Econ. Plan. Sci. 61, 70–89 (2018a)

    Article  Google Scholar 

  • Tavana, M., Khalili-Damghani, K., Santos Arteaga, F.J., Mahmoudi, R., Hafezalkotob, A.: Efficiency decomposition and measurement in two-stage fuzzy DEA models using a bargaining game approach. Comput. Ind. Eng. 118, 394–408 (2018b)

    Article  Google Scholar 

  • Taylor, W.M., Thompson, R.G., Thrall, R.M., Dharmapala, P.S.: DEA/AR efficiency and profitability of Mexican banks: a total income model. Eur. J. Oper. Res. 98, 346–363 (1997)

    Article  Google Scholar 

  • Thanassoulis, E., Dyson, R.G.: Estimating preferred target input-output levels using data envelopment analysis. Eur. J. Oper. Res. 56(1), 80–97 (1992)

    Article  Google Scholar 

  • Thompson, R.G., Langemeier, L.N., Lee, C.T., Thrall, R.M.: The role of multiplier bounds in efficiency analysis with application to Kansas farming. J. Econom. 46, 93–108 (1990)

    Article  Google Scholar 

  • Wong, B.Y.H., Luque, M., Yang, J.B.: Using interactive multiobjective methods to solve DEA problems with value judgments. Comput. Oper. Res. 36, 623–636 (2009)

    Article  Google Scholar 

  • Yang, J.B., Li, D.: Normal vector identification and interactive tradeoff analysis using minimax formulation in multiobjective optimization. IEEE Trans. Syst. Man Cybern. Part A Syst. Hum. 32(3), 305–319 (2002)

    Article  Google Scholar 

  • Yang, J.B., Xu, D.L.: Interactive minimax optimisation for integrated performance analysis and resource planning. Comput. Oper. Res. 46, 78–90 (2014)

    Article  Google Scholar 

  • Zhu, J.: Data envelopment analysis with preference structure. J. Oper. Res. Soc. 47(1), 136–150 (1996)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Francisco J. Santos-Arteaga.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Di Caprio, D., Ebrahimnejad, A., Ghiyasi, M. et al. Integrating fuzzy goal programming and data envelopment analysis to incorporate preferred decision-maker targets in efficiency measurement. Decisions Econ Finan 43, 673–690 (2020). https://doi.org/10.1007/s10203-020-00297-5

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10203-020-00297-5

Keywords

JEL Classification

Navigation