Combining data envelopment analysis and multi-objective model for the efficient facility location–allocation decision

Abstract This paper proposes an innovative procedure of finding efficient facility location–allocation (FLA) schemes, integrating data envelopment analysis (DEA) and a multi-objective programming (MOP) model methodology. FLA decisions provide a basic foundation for designing efficient supply chain n...

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Main Authors: Jae-Dong Hong, Ki-Young Jeong
Format: Article
Language:English
Published: Islamic Azad University 2018-10-01
Series:Journal of Industrial Engineering International
Subjects:
Online Access:http://link.springer.com/article/10.1007/s40092-018-0294-2
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author Jae-Dong Hong
Ki-Young Jeong
author_facet Jae-Dong Hong
Ki-Young Jeong
author_sort Jae-Dong Hong
collection DOAJ
description Abstract This paper proposes an innovative procedure of finding efficient facility location–allocation (FLA) schemes, integrating data envelopment analysis (DEA) and a multi-objective programming (MOP) model methodology. FLA decisions provide a basic foundation for designing efficient supply chain network in many practical applications. The procedure proposed in this paper would be applied to the FLA problems where various conflicting performance measures are considered. The procedure requires that conflicting performance measures classified as inputs to be minimized, or outputs to be maximized. Solving an MOP problem generates diverse alternative FLA schemes along with multi-objective values. DEA evaluates these schemes to generate a relative efficiency score for each scheme. Then, using stratification DEA, all of these FLA schemes are stratified into several levels, from the most efficient to the most inefficient levels. A case study is presented to demonstrate the effectiveness and efficiency of the proposed integrating method. We observe that the combined approach in this paper performs well and would provide many insights to academians as well as practitioners and researchers.
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spelling doaj.art-fa147af65a444f9ebb191d30254dc9282022-12-21T22:24:36ZengIslamic Azad UniversityJournal of Industrial Engineering International1735-57022251-712X2018-10-0115231533110.1007/s40092-018-0294-2Combining data envelopment analysis and multi-objective model for the efficient facility location–allocation decisionJae-Dong Hong0Ki-Young Jeong1Industrial Engineering, South Carolina State UniversityEngineering Management, University of Houston at Clear LakeAbstract This paper proposes an innovative procedure of finding efficient facility location–allocation (FLA) schemes, integrating data envelopment analysis (DEA) and a multi-objective programming (MOP) model methodology. FLA decisions provide a basic foundation for designing efficient supply chain network in many practical applications. The procedure proposed in this paper would be applied to the FLA problems where various conflicting performance measures are considered. The procedure requires that conflicting performance measures classified as inputs to be minimized, or outputs to be maximized. Solving an MOP problem generates diverse alternative FLA schemes along with multi-objective values. DEA evaluates these schemes to generate a relative efficiency score for each scheme. Then, using stratification DEA, all of these FLA schemes are stratified into several levels, from the most efficient to the most inefficient levels. A case study is presented to demonstrate the effectiveness and efficiency of the proposed integrating method. We observe that the combined approach in this paper performs well and would provide many insights to academians as well as practitioners and researchers.http://link.springer.com/article/10.1007/s40092-018-0294-2Facility location–allocationData envelopment analysisMulti-objective programmingPerformance measuresRelative efficiency score
spellingShingle Jae-Dong Hong
Ki-Young Jeong
Combining data envelopment analysis and multi-objective model for the efficient facility location–allocation decision
Journal of Industrial Engineering International
Facility location–allocation
Data envelopment analysis
Multi-objective programming
Performance measures
Relative efficiency score
title Combining data envelopment analysis and multi-objective model for the efficient facility location–allocation decision
title_full Combining data envelopment analysis and multi-objective model for the efficient facility location–allocation decision
title_fullStr Combining data envelopment analysis and multi-objective model for the efficient facility location–allocation decision
title_full_unstemmed Combining data envelopment analysis and multi-objective model for the efficient facility location–allocation decision
title_short Combining data envelopment analysis and multi-objective model for the efficient facility location–allocation decision
title_sort combining data envelopment analysis and multi objective model for the efficient facility location allocation decision
topic Facility location–allocation
Data envelopment analysis
Multi-objective programming
Performance measures
Relative efficiency score
url http://link.springer.com/article/10.1007/s40092-018-0294-2
work_keys_str_mv AT jaedonghong combiningdataenvelopmentanalysisandmultiobjectivemodelfortheefficientfacilitylocationallocationdecision
AT kiyoungjeong combiningdataenvelopmentanalysisandmultiobjectivemodelfortheefficientfacilitylocationallocationdecision