Evaluating shops efficiency using data envelopment analysis: Categorical approach

The article introduces Data Envelopment Analysis (DEA) and its applicability as mathematical programming technique. It evaluates the performance of homogeneous operating decision-making units. DEA has been proven as valuable performance evaluation method in situations when decision-making units unde...

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Main Author: Alemka Šegota
Format: Article
Language:deu
Published: Faculty of Economics University of Rijeka 2008-12-01
Series:Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu
Subjects:
Online Access:https://www.efri.hr/sites/efri.hr/files/cr-collections/2/eko-zbornik-2008-2-segota.pdf
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author Alemka Šegota
author_facet Alemka Šegota
author_sort Alemka Šegota
collection DOAJ
description The article introduces Data Envelopment Analysis (DEA) and its applicability as mathematical programming technique. It evaluates the performance of homogeneous operating decision-making units. DEA has been proven as valuable performance evaluation method in situations when decision-making units under considerationhave multiple inputs and outputs and operate under similar conditions. For dealing with situations when units operate under different conditions, we have proposed categorical approach and analysed the influence of unit’s environment on relative efficiency results by applying categorical model on real data of 57 shops within one retailing organization. DEA identified good operating practices as members of efficient frontier (benchmark members) and those under efficient frontier that should be analysed as candidates for reorganization or even closure. Relative efficiency results obtained by non-controllable BCC model and categorical BCC model were significantly different so our conclusion is that business environmentgreatly influences the performance evaluation for several units and should be additionally investigated.
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spelling doaj.art-955e79c447f94677ba51ff2810dfbe022022-12-22T03:05:54ZdeuFaculty of Economics University of RijekaZbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu1331-80042008-12-01262325343Evaluating shops efficiency using data envelopment analysis: Categorical approachAlemka ŠegotaThe article introduces Data Envelopment Analysis (DEA) and its applicability as mathematical programming technique. It evaluates the performance of homogeneous operating decision-making units. DEA has been proven as valuable performance evaluation method in situations when decision-making units under considerationhave multiple inputs and outputs and operate under similar conditions. For dealing with situations when units operate under different conditions, we have proposed categorical approach and analysed the influence of unit’s environment on relative efficiency results by applying categorical model on real data of 57 shops within one retailing organization. DEA identified good operating practices as members of efficient frontier (benchmark members) and those under efficient frontier that should be analysed as candidates for reorganization or even closure. Relative efficiency results obtained by non-controllable BCC model and categorical BCC model were significantly different so our conclusion is that business environmentgreatly influences the performance evaluation for several units and should be additionally investigated.https://www.efri.hr/sites/efri.hr/files/cr-collections/2/eko-zbornik-2008-2-segota.pdfData envelopment analysisBCC modelRetailingCategorical variables
spellingShingle Alemka Šegota
Evaluating shops efficiency using data envelopment analysis: Categorical approach
Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu
Data envelopment analysis
BCC model
Retailing
Categorical variables
title Evaluating shops efficiency using data envelopment analysis: Categorical approach
title_full Evaluating shops efficiency using data envelopment analysis: Categorical approach
title_fullStr Evaluating shops efficiency using data envelopment analysis: Categorical approach
title_full_unstemmed Evaluating shops efficiency using data envelopment analysis: Categorical approach
title_short Evaluating shops efficiency using data envelopment analysis: Categorical approach
title_sort evaluating shops efficiency using data envelopment analysis categorical approach
topic Data envelopment analysis
BCC model
Retailing
Categorical variables
url https://www.efri.hr/sites/efri.hr/files/cr-collections/2/eko-zbornik-2008-2-segota.pdf
work_keys_str_mv AT alemkasegota evaluatingshopsefficiencyusingdataenvelopmentanalysiscategoricalapproach