Comparison the discriminate power of variable return to scale models in evaluate efficiency of decision-making units in the banking industry

Subject Areas : Industrial Management

Gholamreza Panahandeh Khojin ¹ , Abbas Toloie Ashlaghi ² , Mohammad Ali Afshar Kazemi ³

1 - Department of Industrial Management, Faculty of Economics and Management, Islamic Azad University, Research Sciences Branch, Tehran, Iran
2 - Department of Industrial Management, Faculty of Economics and Management, Islamic Azad University, Research Sciences Branch, Tehran, Iran
3 - Department of Industrial Management , Central branch of Tehran Azad university

Received: 2020-10-17 Accepted : 2020-12-07 Published : 2021-01-16

Keywords: Ghavamin Bank, Modified goal programming data envelopment analysis model, Data envelopment analysis, Goal programming data envelopment analysis model,

Abstract :

Data envelopment analysis is used as a suitable tool to estimate the efficiency of companies that use production technologies with multiple inputs and multiple outputs. Classical data envelopment analysis models often do not provide accurate information about the status of units to managers and organizational policymakers due to the low resolution of units. In this research, the basis of the BCC model is the output oriented of data envelopment analysis and in order to increase the discriminate of efficient decision-making units from inefficient, the ideal data envelopment analysis model based on BCC was used and then to increase the resolution Decision Making Units A new model called the Modified goal Programming Model of Data Envelopment Analysis based on output-oriented BCC was used to measure performance. In this study, the management of Ghavamin Bank branches across the country was evaluated. The results of the research show the discriminate power of the modified goal programming model of data envelopment analysis based on output-oriented BCC compared to other data envelopment analysis models. So that out of 32 managements under review in Ghavamin Bank, the management of branches in the west of Tehran was identified as efficient using this model and the rest of the managements were found to be inefficient.

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