Proposing a Model of Efficiency Evaluation Based on the Adjusted Range Measurement Model and Weight Restrictions (Case Study: Branches of Iran Insurance Company)
Objective: One serious drawback of the application of data envelopment analysis in insurance firm efficiency evaluation has been the absence of decision-maker and experts’ opinions, allowing total freedom while allocating weights to input and output data of insurance firms under analysis. This allow...
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| Format: | Article |
| Language: | fas |
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University of Tehran
2018-06-01
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| Series: | مدیریت صنعتی |
| Subjects: | |
| Online Access: | https://imj.ut.ac.ir/article_67788_1355eb63b8fb47594ed72bb3c6acc4dd.pdf |
| _version_ | 1818049898455498752 |
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| author | Ali Ebrahimi Kordlar Abdol Hossein Jafarzadeh Mohammad Hadi Aliahmadi |
| author_facet | Ali Ebrahimi Kordlar Abdol Hossein Jafarzadeh Mohammad Hadi Aliahmadi |
| author_sort | Ali Ebrahimi Kordlar |
| collection | DOAJ |
| description | Objective: One serious drawback of the application of data envelopment analysis in insurance firm efficiency evaluation has been the absence of decision-maker and experts’ opinions, allowing total freedom while allocating weights to input and output data of insurance firms under analysis. This allows insurance firms to achieve artificially highly efficient grants by ignoring some important inputs and outputs.
Methods: The most widespread method for considering decision-maker and experts’ opinions in data envelopment analysis models is, perhaps, the weight restrictions inclusion. Weight restrictions allow for the integration of decision maker and experts’ opinions and controlling the range of weight changes in Data Envelopment analysis. Therefore, in this paper, an adjusted range measurement model considering the weight restrictions once and not considering weight restrictions later is used.
Results: The average efficiency of the adjusted range measurement model with and without considering the weight restrictions is 0.927 and 0.959, respectively. The number of efficient branches in the presence of weight restrictions has decreased from 71 units to 24 units representing the impact of these restrictions.
Conclusion: This article intended to propose a new data envelopment model regarding an adjusted range measure and considering the weight restrictions and the model was tested on Iran insurance company. |
| first_indexed | 2024-12-10T10:44:54Z |
| format | Article |
| id | doaj.art-d9e2d8426502494eadc5d1b03c30cfaa |
| institution | Directory Open Access Journal |
| issn | 2008-5885 2423-5369 |
| language | fas |
| last_indexed | 2024-12-10T10:44:54Z |
| publishDate | 2018-06-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | مدیریت صنعتی |
| spelling | doaj.art-d9e2d8426502494eadc5d1b03c30cfaa2022-12-22T01:52:12ZfasUniversity of Tehranمدیریت صنعتی2008-58852423-53692018-06-0110216118210.22059/imj.2018.262152.100746367788Proposing a Model of Efficiency Evaluation Based on the Adjusted Range Measurement Model and Weight Restrictions (Case Study: Branches of Iran Insurance Company)Ali Ebrahimi Kordlar0Abdol Hossein Jafarzadeh1Mohammad Hadi Aliahmadi2Associate Prof. of Accounting, Faculty of Management, University of Tehran, , IranPhD Candidate of Operations Research, Farabi Campus, University of Tehran, , IranPhD Candidate of Industrial Engineering, Iran University of Science & Technology, , IranObjective: One serious drawback of the application of data envelopment analysis in insurance firm efficiency evaluation has been the absence of decision-maker and experts’ opinions, allowing total freedom while allocating weights to input and output data of insurance firms under analysis. This allows insurance firms to achieve artificially highly efficient grants by ignoring some important inputs and outputs. Methods: The most widespread method for considering decision-maker and experts’ opinions in data envelopment analysis models is, perhaps, the weight restrictions inclusion. Weight restrictions allow for the integration of decision maker and experts’ opinions and controlling the range of weight changes in Data Envelopment analysis. Therefore, in this paper, an adjusted range measurement model considering the weight restrictions once and not considering weight restrictions later is used. Results: The average efficiency of the adjusted range measurement model with and without considering the weight restrictions is 0.927 and 0.959, respectively. The number of efficient branches in the presence of weight restrictions has decreased from 71 units to 24 units representing the impact of these restrictions. Conclusion: This article intended to propose a new data envelopment model regarding an adjusted range measure and considering the weight restrictions and the model was tested on Iran insurance company.https://imj.ut.ac.ir/article_67788_1355eb63b8fb47594ed72bb3c6acc4dd.pdfInsuranceEfficiencyData Envelopment AnalysisRange adjusted measure weight restrictions |
| spellingShingle | Ali Ebrahimi Kordlar Abdol Hossein Jafarzadeh Mohammad Hadi Aliahmadi Proposing a Model of Efficiency Evaluation Based on the Adjusted Range Measurement Model and Weight Restrictions (Case Study: Branches of Iran Insurance Company) مدیریت صنعتی Insurance Efficiency Data Envelopment Analysis Range adjusted measure weight restrictions |
| title | Proposing a Model of Efficiency Evaluation Based on the Adjusted Range Measurement Model and Weight Restrictions (Case Study: Branches of Iran Insurance Company) |
| title_full | Proposing a Model of Efficiency Evaluation Based on the Adjusted Range Measurement Model and Weight Restrictions (Case Study: Branches of Iran Insurance Company) |
| title_fullStr | Proposing a Model of Efficiency Evaluation Based on the Adjusted Range Measurement Model and Weight Restrictions (Case Study: Branches of Iran Insurance Company) |
| title_full_unstemmed | Proposing a Model of Efficiency Evaluation Based on the Adjusted Range Measurement Model and Weight Restrictions (Case Study: Branches of Iran Insurance Company) |
| title_short | Proposing a Model of Efficiency Evaluation Based on the Adjusted Range Measurement Model and Weight Restrictions (Case Study: Branches of Iran Insurance Company) |
| title_sort | proposing a model of efficiency evaluation based on the adjusted range measurement model and weight restrictions case study branches of iran insurance company |
| topic | Insurance Efficiency Data Envelopment Analysis Range adjusted measure weight restrictions |
| url | https://imj.ut.ac.ir/article_67788_1355eb63b8fb47594ed72bb3c6acc4dd.pdf |
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