Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30067
Joint Use of Factor Analysis (FA) and Data Envelopment Analysis (DEA) for Ranking of Data Envelopment Analysis

Authors: Reza Nadimi, Fariborz Jolai

Abstract:

This article combines two techniques: data envelopment analysis (DEA) and Factor analysis (FA) to data reduction in decision making units (DMU). Data envelopment analysis (DEA), a popular linear programming technique is useful to rate comparatively operational efficiency of decision making units (DMU) based on their deterministic (not necessarily stochastic) input–output data and factor analysis techniques, have been proposed as data reduction and classification technique, which can be applied in data envelopment analysis (DEA) technique for reduction input – output data. Numerical results reveal that the new approach shows a good consistency in ranking with DEA.

Keywords: Effectiveness, Decision Making, Data EnvelopmentAnalysis, Factor Analysis

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1082089

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF

References:


[1] A. Charnes, W.W. Cooper, E. Rhodes, "Measuring the efficiency of decision making units", European Journal of Operations Research 2 (1978) 429 -444.
[2] L. Easton, D.J. Murphy, J.N. Pearson, "Purchasing performance evaluation: with data envelopment analysis", European Journal of Purchasing & Supply Management 8 (2002) 123-134.
[3] N. Adler, B. Golany, "Evaluation of deregulated airline networks using data envelopment analysis combined with principal component analysis with an application to Western Europe", European Journal of Operations Research 132, (2001) 260-273.
[4] N. Adler, J. Berechman, "Measuring airport quality from the airlines- viewpoint: an application of data envelopment analysis", Transport Policy 8 (2001) 171-181.
[5] R.D.Banker, A.Charnes,W.W.Cooper, "Some models for estimating technical and scale inefficiencies in data envelopment analysis", Management Science 30(9)(1984)1079-1092
[6] How to perform and interpret Factor analysis using SPSS, www.ncl.ac.Uk/iss/statistics/docs/Factoranalysis.html, 2002.
[7] J.Zhu, "Data envelopment analysis vs principal component analysis : An illustrative study of economic performance of Chinese cities", European Journal of Operation Research 111,(1998) 50-61.
[8] M.K. Epstein, J.C. Henderson, "Data envelopment analysis for managerial control and diagnosis", Decision Science 20, (1989) 90-119.
[9] B.S. Everitt & G. Dunn, "Applied Multivariate Data Analysis", Edward Arnold, London, pp304 (1991).
[10] T. Hastie, R. Tibshirani, "Discriminant analysis by Gaussian mixtures", J. Roy. Statist. Soc, B 58 (1996) 155-176.
[11] J.D. Banfield, A.E. Raftery, "Model-based Gaussian and non-Gaussian clustering", Biometrics, 49 (1993) 803-821.
[12] J.D. Banfield, A.E. Raftery, "Model-based clustering, discriminant analysis, and density estimation", J. Amer. Statist. Assoc, 97 (2002) 611-631.
[13] D.G. Cal├▓, "Gaussian mixture model classification: a projection pursuit approach", Comput. Statist. Data Anal., 52 (2007) 471-482.