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Malmquist productivity index for two-stage network systems under data uncertainty: A real-world case study.
Seyed Ehsan Shojaie1, Seyed Jafar Sadjadi2, Reza Tavakkoli-Moghaddam3
1Department of Industrial Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran.
This study introduces a novel method for measuring productivity change in two-stage network data envelopment analysis (TSNDEA) by integrating the Malmquist productivity index (MPI) with uncertain programming. This approach enhances performance assessment by accounting for data uncertainty.
Area of Science:
- Operations Research
- Management Science
- Econometrics
Background:
- Measuring productivity change is vital for decision-making unit (DMU) performance evaluation.
- Traditional data envelopment analysis (DEA) models struggle with data uncertainty.
- Two-stage network structures are common in financial and insurance sectors.
Purpose of the Study:
- To develop a new approach for measuring productivity change under data uncertainty.
- To integrate the Malmquist productivity index (MPI) with two-stage network data envelopment analysis (TSNDEA).
- To enhance the robustness and reliability of productivity measurements in DMUs.
Main Methods:
- Utilizing two-stage network data envelopment analysis (TSNDEA).
- Integrating the Malmquist productivity index (MPI) with an uncertain programming framework.
- Employing fuzzy mathematical programming to model data uncertainty in DEA.
Main Results:
- The proposed approach effectively measures productivity change by considering technical efficiency and technological progress.
- The integration of fuzzy programming enhances the modeling of uncertain input and output data.
- The method provides a more robust and reliable assessment of productivity change.
Conclusions:
- The developed method offers a comprehensive analysis of productivity change in DMUs.
- It aids decision-makers in identifying areas for efficiency improvement.
- The findings support more informed resource allocation and strategic decision-making.
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