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An evaluation of cross-efficiency methods: With an application to warehouse performance
- Source :
- Biblos-e Archivo. Repositorio Institucional de la UAM, instname, Applied Mathematics and Computation, 406:126261. Elsevier Inc.
- Publication Year :
- 2021
- Publisher :
- Elsevier, 2021.
-
Abstract
- Cross-efficiency measurement is an extension of Data Envelopment Analysis that allows for tie-breaking ranking of the Decision Making Units (DMUs) using all the peer evaluations. In this article we examine the theory of cross-efficiency measurement by comparing a selection of methods popular in the literature. These methods are applied to performance measurement of European warehouses. We develop a cross-efficiency method based on a rank-order DEA model to accommodate the ordinal nature of some key variables characterizing warehouse performance. This is one of the first comparisons of methods on a real-life dataset and the first time that a model allowing for qualitative variables is included in such a comparison. Our results show that the choice of model matters, as one obtains statistically different rankings from each one of them. This holds in particular for the multiplicative and game-theoretic methods whose results diverge from the classic method. From a managerial perspective, focused on the applicability of the methods, we evaluate them through a multidimensional metric which considers their capability to rank DMUs, their ease of implementation, and their robustness to sensitivity analyses. We conclude that standard weight-restriction methods, as initiated by Sexton et al. [48], perform as well as recently introduced, more sophisticated alternatives<br />Spanish Ministry of Science and Innovation (Ministerio de Ciencia e Innovación), the State Research Agency (Agencia Estatal de Investigación) and the European Regional Development Fund (Fondo Europeo de Desarrollo Regional) under grants EIN2020-112260
- Subjects :
- 0209 industrial biotechnology
Computer science
Decision-making units
Applied Mathematics
Rank (computer programming)
020206 networking & telecommunications
02 engineering and technology
computer.software_genre
Warehouse
Economía
Computational Mathematics
Rank-order
020901 industrial engineering & automation
Ranking
DEA
Robustness (computer science)
Cross-efficiency
0202 electrical engineering, electronic engineering, information engineering
Key (cryptography)
Data envelopment analysis
Performance measurement
Data mining
Metric (unit)
computer
Selection (genetic algorithm)
Subjects
Details
- Language :
- English
- ISSN :
- 00963003
- Database :
- OpenAIRE
- Journal :
- Biblos-e Archivo. Repositorio Institucional de la UAM, instname, Applied Mathematics and Computation, 406:126261. Elsevier Inc.
- Accession number :
- edsair.doi.dedup.....b1188c2a95ae7907189906399b55314c
- Full Text :
- https://doi.org/10.1016/j.amc.2021.126261