Using DEA and AHP for Ratio Analysis

Abstract

This research proposes an integrated approach to the Data Envelopment Analysis (DEA) and Analytic Hierarchy Process (AHP) methodologies for ratio analysis. According to this, we compute two sets of weights of ratios in the DEA framework. All ratios are treated as outputs without explicit inputs. The first set of weights represents the most attainable efficiency level for each Decision Making Unit (DMU) in comparison to the other DMUs. The second set of weights represents the relative priority of output-ratios using AHP. We assess the performance of each DMU in terms of the relative closeness to the priority weights of output-ratios. For this purpose, we develop a parametric goal programming model to measure the deviations between the two sets of weights. Increasing the value of a parameter in a defined range of efficiency loss, we explore how much the deviations can be improved to achieve the desired goals of the decision maker. This may result in various ranking positions for each DMU in comparison to the other DMUs. An illustrated example of eight listed companies in the steel industry of China is used to highlight the usefulness of the proposed approach.

Evaluatıon of The Educational Performances of OECD Countries

“…(2013), VZAHS yönteminin uygulanmasında karşılaşılan zorlukları belirlemek için örnek bir matris kullanarak bu yöntem ile diğer ağırlık hesaplama yöntemlerini kıyaslamıştır. Pakkar (2014), oran analizi için AHS ve VZA yöntemlerini birlikte kullanarak bütünleşik bir yaklaşım önermiştir. Bu yaklaşıma göre, iki ağırlık kümesi hesaplanmıştır.…”

“…Bu yaklaşım, iki aşamalı olup ilk aşamada tedarikçilerin kriterleri üzerinde ikili karşılaştırma yapmak için AHS yöntemi uygulanmış, ikinci aşamada ise AHS yönteminden elde edilen ağırlıklar, VZA modelinin çıktısı olarak kullanılmış ve problem çözülmüştür. Çağlar ve Öztaş (2016), Pakkar (2014)'ın AHS ve VZA yöntemleri ile oran analizi için önerdiği bütünleşik yaklaşımı temel alarak, Türkiye'de faaliyet gösteren sekiz adet hayat dışı sigorta şirketini 2014 yılı finansal oranları yardımıyla sıralamıştır. Fışkın vd.…”

Multiple attribute grey relational analysis using DEA and AHP

“…It is worth pointing out that the models proposed in this article are not brand-new models in the DEA-AHP literature. Conceptually, they are parallel to the ratio-based DEA models using AHP, as discussed in [17]. Nevertheless, it is the first time that these models are applied to the field of GRA.…”

A Hierarchical Aggregation Approach for Indicators Based on Data Envelopment Analysis and Analytic Hierarchy Process

“…The recent studies by Pakkar [45][46][47][48][49][50] demonstrate the effects of imposing weight bounds on the different variants of DEA models using AHP. To this end, AHP has been applied in single-level DEA models [47][48][49][50] and two-level DEA models [45,46].…”

“…To this end, AHP has been applied in single-level DEA models [47][48][49][50] and two-level DEA models [45,46]. Due to the complexity of the hierarchical structures of indicators, this paper applies AHP into an additive three-level DEA model in the context of CI construction.…”