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Yang, J. - B., Wong, B. Y. H., Xu, D. - L., & Stewart, T. J. (2009). Integrating DEA-oriented performance assessment and target setting using interactive MOLP methods. European Journal of Operational Research, 195(1), 205–222.
Abstract: Data envelopment analysis (DEA) and multiple objective linear programming (MOLP) are tools that can be used in management control and planning. Whilst these two types of model are similar in structure, DEA is directed to assessing past performances as part of management control function and MOLP to planning future performance targets. This paper is devoted to investigating equivalence models and interactive tradeoff analysis procedures in MOLP, such that DEA-oriented performance assessment and target setting can be integrated in a way that the decision makers? preferences can be taken into account in an interactive fashion. Three equivalence models are investigated between the output-oriented dual DEA model and the minimax reference point formulations, namely the super-ideal point model, the ideal point model and the shortest distance model. These models can be used to support efficiency analysis in the same way as the conventional DEA model does and also support tradeoff analysis for setting target values by individuals or groups. A case study is conducted to illustrate how DEA-oriented efficiency analysis can be conducted using the MOLP methods and how such performance assessment can be integrated into an interactive procedure for setting realistic target values.
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Wong, B. Y. H., Luque, M., & Yang, J. - B. (2009). Using interactive multiobjective methods to solve DEA problems with value judgements. Computers and Operations Research, 36(2), 623–636.
Abstract: Data envelopment analysis (DEA) is a performance measurement tool that was initially developed without consideration of the decision maker (DM)’s preference structures. Ever since, there has been a wide literature incorporating DEA with value judgements such as the goal and target setting models. However, most of these models require prior judgements on target or weight setting. This paper will establish an equivalence model between DEA and multiple objective linear programming (MOLP) and show how a DEA problem can be solved interactively without any prior judgements by transforming it into an MOLP formulation. Various interactive multiobjective models would be used to solve DEA problems with the aid of PROMOIN, an interactive multiobjective programming software tool. The DM can then search along the efficient frontier to locate the most preferred solution where resource allocation and target levels based on the DM’s value judgements can be set. An application on the efficiency analysis of retail banks in the UK is examined. Comparisons of the results among the interactive MOLP methods are investigated and recommendations on which method may best fit the data set and the DM’s preferences will be made.
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Wang, Y. - M., Chin, K. - S., Poon, G. K. K., & Yang, J. - B. (2009). Risk evaluation in failure mode and effects analysis using fuzzy weighted geometric mean. Expert Systems with Applications, 36(2, Part 1), 1195–1207.
Abstract: Failure mode and effects analysis (FMEA) has been extensively used for examining potential failures in products, processes, designs and services. An important issue of FMEA is the determination of risk priorities of the failure modes that have been identified. The traditional FMEA determines the risk priorities of failure modes using the so-called risk priority numbers (RPNs), which require the risk factors like the occurrence (O), severity (S) and detection (D) of each failure mode to be precisely evaluated. This may not be realistic in real applications. In this paper we treat the risk factors O, S and D as fuzzy variables and evaluate them using fuzzy linguistic terms and fuzzy ratings. As a result, fuzzy risk priority numbers (FRPNs) are proposed for prioritization of failure modes. The FRPNs are defined as fuzzy weighted geometric means of the fuzzy ratings for O, S and D, and can be computed using alpha-level sets and linear programming models. For ranking purpose, the FRPNs are defuzzified using centroid defuzzification method, in which a new centroid defuzzification formula based on alpha-level sets is derived. A numerical example is provided to illustrate the potential applications of the proposed fuzzy FMEA and the detailed computational process of the FRPNs.
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Chin, K. - S., Wang, Y. - M., Poon, G. K. K., & Yang, J. - B. (2009). Failure mode and effects analysis by data envelopment analysis. Decision Support Systems, 48(1), 246–256.
Abstract: Failure mode and effects analysis (FMEA) is a method that examines potential failures in products or processes and has been used in many quality management systems. One important issue of FMEA is the determination of the risk priorities of failure modes. In this paper we propose an FMEA which uses data envelopment analysis (DEA), a well-known performance measurement tool, to determine the risk priorities of failure modes. The proposed FMEA measures the maximum and minimum risks of each failure mode. The two risks are then geometrically averaged to measure the overall risks of failure modes. The risk priorities are determined in terms of overall risks rather than maximum or minimum risks only. Two numerical examples are provided and examined using the proposed FMEA to show its potential applications and benefits.
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Chin, K. - S., Xu, D. -ling, Yang, J. - B., & Ping-Kit Lam, J. (2008). Group-based ER-AHP system for product project screening. Expert Systems with Applications, 35(4), 1909–1929.
Abstract: New product development (NPD) is highly risky because of fierce competition, as well as rapid technological and market changes, which results in high rates of NPD project failure. A lot of research has found that the high mortality rate is, to some extent, accountable to the selection of wrong NPD projects. NPD project screening is thus a critical activity adopted in early product development stages to enhance the success rate of NPD projects. The manufacturing companies thus demand more intelligent and advanced tools that can advance their NPD screening decisions. During the NPD process, companies need to develop their new products with better and safer performance, higher quality and reliability, better environmental-friendliness and in shorter time. Such multiple criteria have to be considered and assessed at early product project screening stages, which involves a group of cross-functional experts. Due to a large number of quantitative and qualitative criteria and lack of sufficient and concrete data, it is often the case that group members have to make decisions in uncertain situations. It is therefore a big challenge for product managers and experts to move from experience-based decision making to scientific NPD project screening decision making. This paper proposes a novel methodology by integrating the evidential reasoning (ER) approach and analytic hierarchy process (AHP), which can help manufacturers in handling uncertainties and group-based decisions in the early NPD project screening stage. An ER-AHP based decision support system is then developed. A case study with an electronic consumer product manufacturer is conducted to demonstrate how the developed ER-AHP methodology and decision support system be used to support NPD project screening decisions.
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Wang, Y. - M., & Yang, J. - B. (2007). Measuring the performances of decision-making units using interval efficiencies. Journal of Computational and Applied Mathematics, 198(1), 253–267.
Abstract: Efficiency is a relative measure because it can be measured within different ranges. The traditional data envelopment analysis (DEA) measures the efficiencies of decision-making units (DMUs) within the range of less than or equal to one. The corresponding efficiencies are referred to as the best relative efficiencies, which measure the best performances of DMUs and determine an efficiency frontier. If the efficiencies are measured within the range of greater than or equal to one, then the worst relative efficiencies can be used to measure the worst performances of DMUs and determine an inefficiency frontier. In this paper, the efficiencies of DMUs are measured within the range of an interval, whose upper bound is set to one and the lower bound is determined through introducing a virtual anti-ideal DMU, whose performance is definitely inferior to any DMUs. The efficiencies turn out to be all intervals and are thus referred to as interval efficiencies, which combine the best and the worst relative efficiencies in a reasonable manner to give an overall measurement and assessment of the performances of DMUs. The new DEA model with the upper and lower bounds on efficiencies is referred to as bounded DEA model, which can incorporate decision maker (DM) or assessor’s preference information on input and output weights. A Hurwicz criterion approach is introduced and utilized to compare and rank the interval efficiencies of DMUs and a numerical example is examined using the proposed bounded DEA model to show its potential application and validity.
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Wang, Y. - M., Yang, J. - B., & Xu, D. - L. (2005). A preference aggregation method through the estimation of utility intervals. Computers and Operations Research, 32(8), 2027–2049.
Abstract: In this paper, a preference aggregation method is developed for ranking alternative courses of actions by combining preference rankings of alternatives given on individual criteria or by individual decision makers. In the method, preference rankings are viewed as constraints on alternative utilities, which are normalized, and linear programming models are constructed to estimate utility intervals, which are weighted and averaged to generate an aggregated utility interval. A simple yet pragmatic interval ranking method is used to compare and/or rank alternatives. The final ranking is generated as the most likely ranking with certain degrees of belief. Three numerical examples are examined to illustrate the potential applications of the proposed method. Scope and purpose The aggregation of preference rankings has wide applications in group decision making, social choice, committee election and voting systems. The purpose of this paper is to develop a preference aggregation method through the estimation of utility intervals, in which preference rankings are associated with utility intervals that are estimated using linear programming models and aggregated using the simple additive weighting method.
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Wang, Y. - M., Greatbanks, R., & Yang, J. - B. (2005). Interval Efficiency Assessment using Data Envelopment Analysis. Fuzzy Sets and Systems, 153(3), 347–370.
Abstract: This paper studies how to conduct efficiency assessment using data envelopment analysis (DEA) in interval and/or fuzzy input-output environments. A new pair of interval DEA models is constructed on the basis of interval arithmetic, which differs from the existing DEA models handling interval data in that the former is a linear CCR model without the need of extra variable alternations and uses a fixed and unified production frontier (i.e. the same constraint set) to measure the efficiencies of decision-making units (DMUs) with interval input and output data, while the latter is usually a nonlinear optimization problem with the need of extra variable alternations or scale transformations and utilizes variable production frontiers (i.e. different constraint sets) to measure interval efficiencies. Ordinal preference information and fuzzy data are converted into interval data through the estimation of permissible intervals and α-level sets, respectively, and are incorporated into the interval DEA models. The proposed interval DEA models are developed for measuring the lower and upper bounds of the best relative efficiency of each DMU with interval input and output data, which are different from the interval formed by the worst and the best relative efficiencies of each DMU. A minimax regret-based approach (MRA) is introduced to compare and rank the efficiency intervals of DMUs. Two numerical examples are provided to show the applications of the proposed interval DEA models and the preference ranking approach.
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