Industrial Engineering and Management Systems

Korean Institute of Industrial Engineers (대한산업공학회)
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DCBA-DEA: A Monte Carlo Simulation Optimization Approach for Predicting an Accurate Technical Efficiency in Stochastic Environment

  • Qiang, Deng (School of Management, University Sains Malaysia) ;
  • Peng, Wong Wai (School of Management, University Sains Malaysia)
  • Received : 2014.02.09
  • Accepted : 2014.03.29
  • Published : 2014.06.30
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Abstract

This article describes a 2-in-1 methodology utilizing simulation optimization technique and Data Envelopment Analysis in measuring an accurate efficiency score. Given the high level of stochastic data in real environment, a novel methodology known as Data Collection Budget Allocation-Data Envelopment Analysis (DCBA-DEA) is developed. An example of the method application is shown in banking institutions. In addition to the novel approach presented, this article provides a new insight to the application domain of efficiency measurement as well as the way one conducts efficiency study.

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References

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