Skip to main content
SpringerLink
Log in

DEA based on strongly efficient and inefficient frontiers and its application on port efficiency measurement

  • Regular Article
  • Published:
OR Spectrum Aims and scope Submit manuscript

Abstract

Data envelopment analysis (DEA) is a non-parametric analytical methodology widely used in efficiency measurement of decision making units (DMUs). Conventionally, after identifying the efficient frontier, each DMU is compared to this frontier and classified as efficient or inefficient. This paper first introduces the strongly efficient frontier (SEF) and strongly inefficient frontier (SIF), and then proposes several models to calculate various distances between DMUs and both frontiers. Specifically, the distances considered in this paper include: (1) both the distance to SEF and the distance to SIF, where the former reveals a unit’s potential opportunity to become a best performer while the latter reveals its potential risk to become a worst performer, and (2) both the closest distance and the farthest distance to frontiers, which may provide different valuable benchmarking information for units. Subsequently, based on these distances, eight efficiency indices are suggested to rank DMUs. Due to different distances adopted in these indices, the efficiency of units can be evaluated from diverse perspectives with different indices employed. In addition, all units can be fully ranked by these indices. The efficiency of 24 major Asian container ports is analyzed with our study, where the potential opportunities and potential crises of these ports are revealed and some new insights about their efficiency are provided.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Adler N, Friedman L, Sinuany-Stern Z (2002) Review of ranking methods in data envelopment analysis context. Eur J Oper Res 140: 249–265

    Article  Google Scholar 

  • Andersen P, Petersen NC (1993) A procedure for ranking efficient units in data envelopment analysis. Manag Sci 39(10): 1261–1264

    Article  Google Scholar 

  • Andersen TR, Hollingsworth KB, Inman LB (2002) The fixed weighting nature of a cross-evaluation model. J Product Anal 18(1): 249–255

    Article  Google Scholar 

  • Aparacio J, Ruiz JL, Sirvent I (2007) Closest targets and minimum distance to the Pareto-efficient frontier in DEA. J Product Anal 28: 209–218

    Article  Google Scholar 

  • Baeka C, Lee JD (2009) The relevance of DEA benchmarking information and the least-distance measure. Math Comput Model 49: 265–275

    Article  Google Scholar 

  • Banker RD, Charnes A, Cooper WW (1984) Some models for estimating technical and scale efficiencies in data envelopment analysis. Manag Sci 30: 1078–1092

    Article  Google Scholar 

  • Barros CP (2003) The measurement of efficiency of Portuguese sea port authorities with DEA. Int J Transp Econ 30(3): 335–354

    Google Scholar 

  • Barros CP (2006) A benchmark analysis of Italian seaports using data envelopment analysis. Marit Econ Logist 8(4): 347–365

    Article  Google Scholar 

  • Brockett PL, Cooper WW, Wang YY, Shin HC (1998) Congestion and inefficiency in Chinese production before and after the 1978 economic reforms. Socio-Econ Plan Sci 32: 1–20

    Article  Google Scholar 

  • Charnes A, Cooper WW, Rhodes E (1978) Measuring the efficiency of decision making units. Eur J Oper Res 2: 429–444

    Article  Google Scholar 

  • Charnes A, Cooper WW, Golany B, Seiford L, Stutz J (1985) Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions. J Econ 30: 91–107

    Google Scholar 

  • Cooper WW, Park KS, Pastor JT (1999) RAM: a range adjusted measure of inefficiency for use with additive models, and relations to other models and measures in DEA. J Product Anal 11: 5–24

    Article  Google Scholar 

  • Cooper WW, Seiford LM, Zhu J (2004) Handbook on data envelopment analysis. Springer, Boston

    Google Scholar 

  • Cooper WW, Seiford LM, Tone K (2006) Introduction to data envelopment analysis and its uses: with DEA-solver software and references. Springer, New York

    Google Scholar 

  • Cullinane KPB, Song DW, Ji P, Wang T (2004) An application of DEA Windows analysis to container port production efficiency. Rev Netw Econ 3(2): 186–208

    Article  Google Scholar 

  • Doyle J, Green R (1994) Efficiency and cross efficiency in DEA: derivations, meanings and the uses. J Oper Res Soc 45(5): 567–578

    Google Scholar 

  • Frei FX, Harker PT (1999) Projections onto efficient frontier: theoretical and computational extension to DEA. J Product Anal 11: 275–300

    Article  Google Scholar 

  • Jahanshahloo GR, Afzalinejad M (2006) A ranking method based on a full-inefficient frontier. Appl Math Model 30: 248–260

    Article  Google Scholar 

  • Liu CC (2008) Evaluating the operational efficiency of major ports in the Asia-Pacific region using data envelopment analysis. Appl Econ 40: 1737–1743

    Article  Google Scholar 

  • Lovell CAK, Pastor JT (1995) Units invariant and translation invariant DEA models. Oper Res Lett 18: 147–151

    Article  Google Scholar 

  • Paradi JC, Asmild M, Simak P (2004) Using DEA and worst practice DEA in credit risk evaluation. J Product Anal 21: 153–165

    Article  Google Scholar 

  • Pastor JT (1994) New additive models for handling zero and negative data. Working Paper, Alicante, Spain. Universidad de Alicante, Departamento de Estadstica e Investigacin Operativa

  • Portela MCAS, Borges PC, Thanassoulis E (2003) Finding closest targets in non-oriented DEA models: the case of convex and non-convex technology. J Product Anal 19: 251–269

    Article  Google Scholar 

  • Robinson R (1998) Asian Hub/Feeder nets: the dynamics of restructuring. Marit Policy Manag 25(1): 21–40

    Article  Google Scholar 

  • Roll Y, Hayuth Y (1993) Port performance comparison applying data envelopment analysis. Marit Policy Manag 20(2): 153–161

    Article  Google Scholar 

  • Sexton TR, Silkman RH, Hogan AJ (1986) Data envelopment analysis: critique and extensions. In: Silkman RH (eds) Measuring efficiency: an assessment of data envelopment analysis. Jossey-Bass, San Francisco, pp 73–105

    Google Scholar 

  • Sharma MJ, Yu SJ (2009) Performance based stratification and clustering for benchmarking of container terminals. Expert Syst Appl 36(3): 5016–5022

    Article  Google Scholar 

  • Tongzon J (2001) Efficiency measurement of selected Australian and other international ports using data envelopment analysis. Transp Res A 35(2): 113–128

    Google Scholar 

  • Turner H, Windle R, Dresner M (2004) North American containerport productivity: 1984–1997. Transp Res E 40(4): 339–356

    Article  Google Scholar 

  • Zhu J (1996) Robustness of the efficient DMUs in data envelopment analysis. Eur J Oper Res 90: 451–460

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Mathematics, College of Science, Nanjing University of Aeronautics and Astronautics, Nanjing, 210016, China

    Jian Lin Jiang

  2. Department of Industrial and Systems Engineering, National University of Singapore, Singapore, 119260, Singapore

    Jian Lin Jiang, Ek Peng Chew & Loo Hay Lee

  3. Center for Maritime Studies, National University of Singapore, Singapore, 118411, Singapore

    Zhuo Sun

Authors
  1. Jian Lin Jiang
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ek Peng Chew
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Loo Hay Lee
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Zhuo Sun
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Jian Lin Jiang.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Jiang, J.L., Chew, E.P., Lee, L.H. et al. DEA based on strongly efficient and inefficient frontiers and its application on port efficiency measurement. OR Spectrum 34, 943–969 (2012). https://doi.org/10.1007/s00291-011-0263-2

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00291-011-0263-2

Keywords

Search

Navigation