Abstract
Data envelopment analysis (DEA) is a technique to measure relative effectiveness based on a ratio scale for industries. DEA is widely used everywhere and for various models. Inverted data envelopment analysis (IDEA) is an extended model of DEA. In this study, we review business analysis using DEA and IDEA. These analysis methods analyze an object based on efficiency/ inefficiency. However, a new problem has arisen in business analysis methods where the domains of efficiency and inefficiency are interconnected. We propose an improvement, suggesting a better business analysis technique. We evaluated the technique by performing a numerical value experiment with real numerical values and compared the original technique with the proposed method. As a result, by solving some examples, the proposed method meets some general practical needs of business analysis. One problem is that a unitary evaluation does not exist because the proposed method evaluates the object from the aspects of both efficiency and inefficiency. The proposed method has no problem in determining the level of efficiency, and can lead a result which will be accepted by the evaluation of individual changing parameters.
Original language | English |
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Pages (from-to) | 119-127 |
Number of pages | 9 |
Journal | Journal of Japan Industrial Management Association |
Volume | 60 |
Issue number | 3 |
Publication status | Published - Dec 1 2009 |
Keywords
- Business analysis
- Business efficiency
- Data envelopment analysis
- Inverted data envelopment analysis
ASJC Scopus subject areas
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics