Licensing and Warranty Agreement
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1 Licensing and Warranty Agreement READ THIS: Do not install the software until you have read and agreed to this agreement. By opening the accompanying software, you acknowledge that you have read and accepted the following terms and conditions. If you do not agree and do not want to be bounded by such terms and conditions, do not install or use the software DEAFrontier. License: The copyright to the software (the DEAFrontier ) is owned by the author. The DEAFontier is protected by the United States copyright laws and international treaty provisions. No part of the DEAFrontier may be reproduced, stored in a retrieval systems, distributed (including but not limited to over the Internet), modified, decompiled, reverse engineered, reconfigured, transmitted, or transcribed, in any form or by any means without the permission of the author. The DEAFontier may not, under any circumstances, be reproduced for sale. This license allows you to use the DEAFontier for educational and research purposes only, not for commercial purposes, including consulting. You may only (i) make one copy of the DEA- Fontier for backup or archival purposes, or (ii) transfer the DEAFontier to a single hard disk, provided that you keep the original for backup or archival purposes. You may not (i) rent or lease the DEAFontier, (ii) copy or reproduce the DEAFontier through a LAN or other network system or through any computer subscriber system, or (iii) modify, adapt, or create derivative works based upon the DEAFontier. You may be held legally responsible for any copying or copyright infringement which is caused by your failure to abide by the above terms and conditions. Limited Warranty: The Publisher and the author provide no other warranties, expressed or implied, including without limitation implied warranties of merchantability and fitness for a particular purpose, and shall not be liable for any damages, including direct, special, indirect, incidental, consequential, or otherwise. The Publisher does not warrant that the functions contained in the DEAFontier will meet your requirements or that the operation of the DEAFontier will be error-free. J. Zhu, Quantitative Models for Performance Evaluation and Benchmarking, DOI / , Springer International Publishing Switzerland
2 Index A Analytic Hierarchy Process (AHP), 55, 124 A priori, 2, 5, 93, 94, 103 Attractiveness, 153, 158, 160, 162 spreadsheet model first degree, 161 output-oriented first degree, 170 second degree, 163 B Balanced benchmarking, 4, 8 Bank, 2, 6, 291, 294, 296 Benchmark-share, 112, 116 for marketability, 116 for profitability, 116 Best practice, 2, 7, 8, 61, 108, 161, 313, 318, 322, 324 Business operation, 1, 2, 3 Business-to-business (B2B) model, 267 Buyer-seller efficiency model, 267, 268, 269 supply chain, 1, 325 C Changing cells, 35, 39, 53, 79, 127, 156, 161, 257, 268, 288, 294, 296, 321 Classification invariance, 141, 142, 143 Competition, 1, 67 Congestion and slacks, 350, 351, 352, 353 measure, 345, 346, 347, 348, 350 slack-based, 353, 354, 355, 358, 359 solving using DEAFrontier, 359, 360 Congestion slacks See Congestion, 183 Constant RTS (CRS), 11, 19 envelopment model, 185, 223, 277, 280, 281, 353 input-oriented, 34, 46, 123, 133, 226, 282, 286, 287, 288, 316 output-oriented, 37, 131, 246, 250, 283 multiplier spreadsheet model, 49 sensitivity analysis, 228, 229, 230, 231, 232, 234 slack-based model, 82, 93, 94, 95 two-stage model centralized model, 298, 299, 300, 301 equivalence, 301, 302, 303, 304 leader-follower model, 305, 306 Constant RTS (CRS);envelopment model input-oriented, 154 Context-dependent DEA input-oriented, 158, 159, 160, 161, 163, 164, 165, 166 output-oriented, 166, 168, 170, 171 Continuous improvement, 1 Coordination, 314, 315 Cost efficiency, 126, 137, 139 Cross efficiency, 62, 63, 64 in spreadsheets, 65, 66 D Data analysis, 3 Data Envelopment Analysis (DEA) Excel Solver, 404 projection, 19, 165, 292, 304 slack, 15, 17, 18, 46, 183, 350, 351, 353, 356, 357, 359 DEA/preference structure (DEA/PS) models, 123, 124, 126, 127, 129, 134, 135 Decision making units (DMUs), 3, 7, 8 Decision variables, 22, 24, 49, 78, 79, 292, 293, 294, 296, 320, 342, 386 Decreasing RTS (DRS), 11 J. Zhu, Quantitative Models for Performance Evaluation and Benchmarking, DOI / , Springer International Publishing Switzerland
3 412 Index E Earnings per share (EPS), 106, 116, 291 Economic order quantity (EOQ), 313 Efficiency ratio, 63, 259, 261, 336, 338, 339 Efficient frontier, 2, 4, 15, 17, 19, 34, 123, 132, 172, 173, 183, 316, 395 Equity, 21, 106, 107, 116, 240, 241 Excel Solver, 22, 39 Extreme efficient, 175, 181, 183, 188, 192, 193, 209, 212, 213, 215, 231, 232, 234, 235, 236, 353 F Financial performance, 2, 106, 116 Fixed-benchmark model, 255, 257, 258, 275 and efficiency ratio, 259, 261, 262 flexible manufacturing systems (FMSs), 155, 157 Format, 274, 307, 399 data sheet, 44 Fortune, 21, 106, 116 Free disposal hull (FDH), 399, 400, 401 G Game cross efficiency, 66, 67 input-oriented, 67, 68, 69, 70, 71 output-oriented, 73, 74, 76 Gap analysis, 2 Global Efficient Target, 165 I Ideal-benchmark models, 263, 266, 268, 269, 275, 276 Increasing RTS (IRS), 11 Industry efficiency, 109, 112 Infeasibility and stability, 222, 224, 225 andstability, 222, 223, 225 and zero data, 197, 198, 199, 200 models to deal with, 193, 194, 195, 196, 197 of DEA-type models, 171 of super-efficiency DEA models, 177, 180, 181, 183 Information technology (IT), 292 impact on firm performance, 293 spreadsheet model, 296 Input prices, 125 Intermediate measures, 291, 292, 293, 296, 299, 305, 307, 308, 312, 315, 331, 334, 338 Internet companies, 250, 261, 266 Interval, 280, 384, 389, 397, 400 Invalid data, 44 Invoke Solver, 23 J Just-in-Time manufacturing system, 267 L Linear model, 25, 335 Linear programming problem, 16, 49, 126, 131, 132, 133, 159, 160, 164, 165, 168, 196, 207, 210, 211, 214, 237, 263, 270, 272, 286, 294, 333 Local Efficient Target, 165, 170 M Manufacturers, 311, 313, 315, 318, 319, 324, 331 Marketability, 107, 291 benchmark-share for, 116 Market value (MV), 106, 291 Measure-specific models, 103 in spreadsheets, 105 Minimum efficiency models, 275 Most productive scale size (MPSS), 286 largest MPSS, 286, 287 spreadsheet model, 288 smallest MPSS, 287 Multiple criteria decision making (MCDM), 7, 129 Multiple Objective Linear Programming (MOLP), 129 Multiplier models in spreadsheets, 49, 50, 51, 53 solving using DEAFrontier, 58, 59 weight restrictions in, 54, 55, 56 N NDRS envelopment models, 188 NIRS envelopment models, 193 Non-negative, 25, 49, 78, 79, 143, 299 Non-radial DEA models, 121, 122, 123, 133, 134, 201 Normalization, 49, 125 O Objective function, 15, 16, 22, 24, 30, 70, 75, 87, 90, 123, 201, 202, 203, 204, 218, 230, 238, 261, 270, 273 Order invariance, 142 Ordinal, 124, 383, 384, 385, 387, 389, 391, 392, 393, 397 Output price, 126, 137
4 Index P Performance evaluation and tradeoffs, 1, 2 of Fortune 500 companies, 106, 107 Piecewise linear, 4, 13 Preference structuresee DEA/preference structure (DEA/PS) models, 103 Priority, 103, 124, 327 Productivity, 1, 4, 93, 259, 404 Profitability, 8, 107 VRS efficiency distribution, 107 Profit efficiency, 139 Progress, 154, 158, 164, 165, 166 R Radial efficiency, 121, 200, 335 Range names, 35, 37, 97, 98, 241, 242, 284, 285, 296 Rank, 61, 124, 153, 161, 168, 383, 391 Reference Set, 19, 22, 25, 35, 153, 161, 175, 176, 177, 180, 183, 201, 202, 210, 351 Relative efficiency, 5 Returns-to-Scale (RTS) classification, 48, 183, 277, 278, 279, 280, 283, 288 input-oriented, 285 output-oriented, 285 estimation, 288 improved RTS method, 281, 282 spreadsheet for, 282, 283, 285 VRS and CRT RTS methods, 278, 279, 280 regions, 277, 278, 285, 288 Revenue Efficiency, 123, 124, 125, 126, 137, 138, 139 Run Macro, 30, 32, 37, 53 S Scale efficiency index, 277 Sensitivity analysis, 175, 193, 213, 215, 224, 226 DEA, 207, 208, 209 spreadsheet models for, 239, 240, 241, 242 under CRS, 228, 229 under VRS, 237, 238, 239 using DEAFrontier, 243 Slack-based DEA model, 97, 135 solving using DEAFrontier software, 100 Solution invariance, 142 Solver Add-In, 23, 27 Solver Parameters dialog box, for calculating congestion slacks, 359 for calculating slacks, 33 for CRS slack-based model, 96 for first degree progress, 166 for Input-oriented CRS multiplier model, 51 for Input-oriented VRS envelopment model, 26 for CRS AR model, 56 for IT spreadsheet, 297 for output-oriented CRS envelopment model, 37 for second degree progress, 166 for supply chain efficiency, 321 for VRS weak input disposability model, 348 Solver reference, 28 Solver Results dialog box, 26, 29 Stability region input stability region, 209, 210, 211, 212, 213 output stability region, 213, 214 Stratification DEA Method, 154, 155, 156, 157 Super-efficiency DEA models, 175, 176, 177 infeasibility of, 177, 180, 181, 183 input oriented VRS model, 189 output oriented VRS model, 183, 184, 185, 187, 188 solving using DEAFrontier, 203, 204 Suppliers, 311, 312, 313, 327 Supply chain, 291, 324, 325 as an input-output system, 313, 314, 315 efficiency, 311, 312 efficiency model, 316, 318 T Total return to investors (TRI), 106, 116 Tradeoffs, 2, 4, 261, 263, 266 Transformation, 1, 106, 141, 142, 144, 386, 392 Charnes-Cooper, 201, 332, 337 logarithmic, 86, 87 U Undesirable, 6 inputs, 145 measure models, 100, 148 outputs, 143, 144 US commercial banks, 291
5 414 Index V Visual Basic for Applications (VBA), 23, 27, 28, 31, 33, 34, 39, 53, 76, 98, 105, 128, 180, 242, 253, 259, 269, 283, 297, 357 VRS envelopment models, 141, 296, 345 VRS multiplier spreadsheet model input-oriented, 53 VRS RTS method, 278 VRS slack-based model, 85 Solver parameter for VRS slack-based model, 98 W Weak disposability DEA models, 346, 359 Weakly efficient DMU, 14, 15, 16, 18, 177, 181, 209, 235
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