Advancing Organizational Efficiency: A Novel Dynamic Network DEA for Strategic Carry-Over Allocation

• Published in: Journal of industrial engineering international Vol. 19; no. 3; p. 81
• Main Authors: hadi Bagherzadeh Valami, heydar, Maryam
• Format: Journal Article
• Language: English
• Published: Tehran Islamic Azad University, South Tehran Branch 01-07-2023
• Subjects: Bank reserves; Banking industry; Costs; Data envelopment analysis; Decision making; Deferred income taxes; Efficiency; Industrial engineering; Mathematical models; Performance assessment; Performance evaluation; Real variables; Resource allocation; Resource management
• ISSN: 1735-5702; 2251-712X

Carryover activities in dynamic DEA play a crucial role in transmitting information between periods and maintaining the continuity of resources from one period to the next within organizational processes. These variables reflect the impact of past decisions on current and future performance. In the literature of Dynamic DEA, carryovers typically connect two consecutive periods. However, in real-world scenarios, certain carryover variables in the production process may persist beyond the immediate subsequent period. The allocation of these carryovers is discretionary and lies within the control of the Decision-Maker (DM). This paper introduces a novel dynamic network DEA (DNDEA) model within the Slack-Based Measure (SBM) framework, with the aim of optimizing the allocation of carryovers to the period under evaluation. Our model not only enhances overall efficiency evaluation but also identifies maximum inefficiency within a network system across multiple evaluation periods. To validate the proposed model, we perform a numerical example focused on the performance assessment of Iranian bank branches using Dynamic DEA techniques. Through comparative analysis against the DNSBM model, we demonstrate that our proposed model exhibits greater discriminatory power. Additionally, it provides more comprehensive insights into resource allocation strategies.