data envelopment analysis in operation research

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Data envelopment analysis, operational research and uncertainty

• Special Issue Paper
• Published: 30 November 2009
• Volume 61 , pages 25–34, ( 2010 )

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• R G Dyson 1 &
• E A Shale 1  

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This paper discusses a number of applications of data envelopment analysis and the nature of uncertainty in those applications. It then reviews the key approaches to handling uncertainty in data envelopment analysis (DEA) (imprecise DEA, bootstrapping, Monte Carlo simulation and chance constrained DEA) and considers their suitability for modelling the applications. The paper concludes with suggestions about the challenges facing an operational research analyst in applying DEA in real-world situations.

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R G Dyson & E A Shale

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Dyson, R., Shale, E. Data envelopment analysis, operational research and uncertainty. J Oper Res Soc 61 , 25–34 (2010). https://doi.org/10.1057/jors.2009.145

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Received : 01 May 2009

Accepted : 01 September 2009

Published : 30 November 2009

Issue Date : 01 January 2010

DOI : https://doi.org/10.1057/jors.2009.145

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  Journal of Business and Administrative Studies Journal / Journal of Business and Administrative Studies / Vol. 15 No. 1 (2023) / Articles (function() { function async_load(){ var s = document.createElement('script'); s.type = 'text/javascript'; s.async = true; var theUrl = 'https://www.journalquality.info/journalquality/ratings/2404-www-ajol-info-jbas'; s.src = theUrl + ( theUrl.indexOf("?") >= 0 ? "&" : "?") + 'ref=' + encodeURIComponent(window.location.href); var embedder = document.getElementById('jpps-embedder-ajol-jbas'); embedder.parentNode.insertBefore(s, embedder); } if (window.attachEvent) window.attachEvent('onload', async_load); else window.addEventListener('load', async_load, false); })();  

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Main article content, performance efficiency of ethiopian commercial banks: data envelopment analysis approach, daniel tolesa, degefe duressa.

The Ethiopian banking sector plays a pivotal role in resource allocation of the country with the absence of a securities market. The study aimed to evaluate financial performance of Ethiopian commercial banks during 2014 to 2020. Data from all of the 17 commercial banks in Ethiopia have been considered in the study which resulted in 119 observations. The classical Data Envelopment Analysis (DEA) models were employed to estimate the efficiency scores. Two input variables (non-interest expense and deposits), and three output variables (net interest income, non-interest income and loans and advances) were identified under intermediation approach. The efficiency scores of Ethiopian commercial banks vary among each banks and years. The highest ranked commercial banks based on the average relative efficiency score are the most stable and consistent banks in the industry. The public owned commercial bank is more efficient than private owned commercial banks in Ethiopia. Whereas, the smallest private owned commercial banks are more efficient than the largest one. Thus, bank managers should review and rescale their scope of operations to levels that guarantees both pure technical efficiency and scale efficiency. Future studies should evaluate the efficiency of Ethiopian commercial banks overtime using parametric analysis and identify factors affecting their financial performance.  

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