TY - JOUR
T1 - Measurement and decomposition of the Malmquist productivity index for parallel production systems
AU - Kao, Chiang
N1 - Funding Information:
This research was partially supported by the Ministry of Science and Technology of the Republic of China (Taiwan), under grant MOST103-2420-H-006-016-MY5 .
Publisher Copyright:
© 2016 Elsevier Ltd
PY - 2017/3/1
Y1 - 2017/3/1
N2 - The conventional Malmquist productivity index (MPI), which ignores the internal structure of a production system when measuring changes in performance between two periods, may produce misleading results. This paper thus takes the operations of the component processes into account in investigating the MPI of parallel production systems. A relational data envelopment analysis (DEA) model is developed to measure the biennial MPIs of the system and internal processes at the same time, and it is shown that the former is a linear combination of the latter. This decomposition helps identify the processes that cause the decline in performance of the system. An example of 39 branches of a commercial bank, with deposits, sales, and services as the three major functions operating in parallel, is used to illustrate this approach.
AB - The conventional Malmquist productivity index (MPI), which ignores the internal structure of a production system when measuring changes in performance between two periods, may produce misleading results. This paper thus takes the operations of the component processes into account in investigating the MPI of parallel production systems. A relational data envelopment analysis (DEA) model is developed to measure the biennial MPIs of the system and internal processes at the same time, and it is shown that the former is a linear combination of the latter. This decomposition helps identify the processes that cause the decline in performance of the system. An example of 39 branches of a commercial bank, with deposits, sales, and services as the three major functions operating in parallel, is used to illustrate this approach.
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U2 - 10.1016/j.omega.2016.04.001
DO - 10.1016/j.omega.2016.04.001
M3 - Article
AN - SCOPUS:84963954560
SN - 0305-0483
VL - 67
SP - 54
EP - 59
JO - Omega (United Kingdom)
JF - Omega (United Kingdom)
ER -