International Journal of Applied Decision Sciences (12 papers in press)
Efficiency measurement to identify the best efficient unit in the presence of dual-role factors
by Bohlool Ebrahimi
Abstract: Efficiency measurement is crucial to management for performance evaluation of several decision-making units (DMUs) in order to find the most efficient unit. Data envelopment analysis (DEA) is a practical and popular method that has been used widely for efficiency measurement in many applications. Thus, in the literature of DEA, several mixed integer DEA models are developed to efficiency measure and find the best efficient unit. In some situations, some factors named dual-role factors may be simultaneously considered as both inputs and outputs. However, a little attention has been paid in the literature of DEA to these types of factors. The current paper develops a new mixed integer linear DEA model to identify the best efficient DMU in the presence of dual-role factors. The basic DEA models consider different roles for each dual-role factor, and also solve at least one model for each DMU to determine the best unit. However, the developed approach in this paper considers a unique role for each dual-role factor, and also determines the best unit through by solving just one mixed integer DEA model. Two numerical examples are used to illustrate the profits and applicability of the developed approach.
Keywords: data envelopment analysis (DEA); efficiency measure; best unit; dual-role factors; supplier selection.
Institutional environment, internal control and corporate social responsibility disclosure quality: evidence from China.
by Lijun WU, Hua Bu
Abstract: This study examines the association between institutional environment, internal control and CSR disclosure quality in China. The institutional environment is divided into legal governance environment and regional governance environment. We find that the perfect legal governance environment, regional governance environment and high-quality internal control can significantly improve the quality of CSR disclosure. The weak regional governance environment can inhibit the positive regulating effect of internal control on the CSR disclosure quality. However, the strong legal governance environment does not significantly improve the positive regulating effect of internal control on the CSR disclosure quality. After a series of robustness tests, the above conclusions are still valid. Our findings have some significant implications for CSR disclosure in China.
Keywords: Legal Governance Environment; Regional Governance Environment; Internal Control; Quality of CSR Disclosure.
Designing Information Ecosystems to Process Citizen Input and Improve Public Sector Decision Making
by Ram Gopalan
Abstract: Recent advances in technology and social media have enabled average, individual citizens to forcefully voice their opinions on various public-sector issues. To fully harvest this new tide of technology-enabled activism, information ecosystems must be proactively designed and scientifically managed to receive and process citizen input. In this paper, an activist is a term broadly used to connote any citizen interested in engaging in participative government, usually mediated by the use of technology. The collective set of measures that need to be rigorously undertaken to bring citizen activism to fruition is referred to as activism science in this paper. This position paper examines five case studies wherein citizen activism has already proved successful. The learnings from these case studies leads to a synthetic proposal for managing activism scientifically, incorporating citizen inputs, management science models, technology and data architectures and suitable participative process design. The proposed activism science framework (ASF) is applied to envision improvements in the delivery of online education and urban services.
Keywords: Smart government; Open data portals; Public sector decision making.
Probability of Informed Trading: a Bayesian Approach
by Pedro Henrique Albuquerque, Yaohao Peng, Eduardo Nakano, Cibele Da-Silva, Leonardo Bosque
Abstract: One of the most popular models for measuring information asymmetry of financial assets is the probability of informed trading model (PIN). Its theoretical foundation and its wide possibility of application made PIN a benchmark in insider trading studies. In view of the interpretability of PIN and its parameters, this study aims to evaluate and propose a Bayesian version for the probability of informed trading model. The proposed approach brings the possibility to include expert opinions about PIN parameters and represents a new contribution to the theoretical scope of market microstructure models.
Keywords: Probability of Informed Trading; PIN; Bayesian Inference; Market Microstructure Model; Private Information; Information Asymmetry.
Locating and Sizing Electric Vehicles Charging Stations in New Markets
by SAFA BHAR LAYEB, MOHAMED AZIZ JEGHAM
Abstract: In countries where there are a handful of electric vehicles (EV), installing appropriately charging stations could promote the usage of this emergent technology. In this work, we address the problem of locating and sizing EV charging stations in the specific context of a virgin market. First, we forecast the percentage of electric vehicles using a Bass diffusion model (BDM). Once the EV demand properly predicted, we adopt a set-covering-based approach through the formulation of linear programming models to locate and size the potential EV charging stations. The objective is to reduce weighted installation and access costs while ensuring that the stations are within a comfortable reach for the EV users. Without any loss of generality, we apply the overall scheme on the real case study of Tunis City, Tunisia, to propose the appropriate charging infrastructure deployment for the year 2025.
Keywords: Transportation; Electric Vehicles; Charging Stations Locations; Linear Programming; Bass Diffusion Model.
Production Trade-off and Weight Restrictions in Two-stage Network Data Envelopment Analysis
by Reza Kazemi Matin, Hamid Kiaei, S.Hadi Nasseri
Abstract: The use of weight restrictions in data envelopment analysis (DEA) is considered an appropriate method to avoid zero inputs and outputs weights. Due to a number of problems associated with the use of weight restrictions, the production trade-off method in DEA is often preferred. An important issue is that in most common DEA models, the internal structure of the production units is ignored and the units are often considered as black-boxes. The current study aims to estimate the production trade-offs in two-stage network data envelopment analysis (NDEA) to observe its likely impact on efficiency evaluation and discrimination of units and subunits. Also, the probable effect of such the trade-offs are shown on the overall efficiency decomposition to divisional efficiencies and production possibility set(PPS) in two-stage NDEA. Finally, a numerical example is used to explain the results and compare the possible effects of different production trade-offs scenarios in two-stage NDEA with standard DEA models.
Keywords: Network data envelopment analysis (NDEA); Two-stage production; Production trade-off; Weight restrictions; Ranking.
An Integrated Fuzzy Multi-criteria Decision Making Approach for Evaluating Suppliers Co-design ability in New Product Development
by Detcharat Sumrit
Abstract: There are many methods for managing the complexity and challenges of new product development (NPD) under faster emerging technology. Most firms use them to collaborate with external organisations for their co-design on new products. This study purposes to provide a measurement model by applying multi-criteria decision making (MCDM) approach to evaluate suppliers co-design capabilities in NPD in terms of product structural design and engineering, product concept and functional design, and process design. This MCDM includes fuzzy step-wise weight assessment ratio analysis (SWARA) to determine the relative weights of criteria and fuzzy technique for order preference by similarity to an ideal solution (TOPSIS) to rank the results of suppliers capabilities regarding to their co-design in NPD. Given the result, supplier with the highest collaboration performance rating is selected at first. The evaluation of suppliers collaboration is regarded as an essential starting point for management challenge to develop suppliers capabilities.
Keywords: MCDM; multi-criteria decision making; Fuzzy SWARA; step-wise weight assessment ratio analysis; Fuzzy TOPSIS; technique for order preference by similarity to an ideal solution; new product development.
A multi-method approach to evaluate land combat vehicle system
by Minh-Tuan Nguyen, Thang Cao
Abstract: This paper utilises Bayesian network (BN), multi-criteria decision making (MCDM), and multi-objective evolutionary algorithms (MOEA) to present a hybrid decision making model for evaluating and optimising the operational impact of different land combat vehicle (LCV) system specifications and configurations. BN is employed to establish a qualitative and quantitative representation of the relations between the variables of the model and calculate standard values of uncertain LCV capabilities like survivability, lethality, etc. MCDM is adopted to integrate the influence of LCV capabilities and calculate the utility value of the selected options. An interactive analysis tool using MOEA is developed to manage the combinatorial nature of the number of LCV system options available and to help the decision maker to avoid any arbitrary selection of sub-optimum baseline vehicles.
Keywords: Bayesian network; BN; multi-criteria decision making; MCDM; analytic hierarchy process; AHP; data visualisation; data analysis; Pareto optimisation; multi-objective evolutionary algorithms; MOEA.
Ranking of efficient units on the basis of distance from virtual ideal and anti-ideal units
by Seyed Hadi Nasseri, Hamid Kiaei
Abstract: Data envelopment analysis (DEA) divides the units under evaluation into two groups: 1) the efficient units; 2) inefficient units. Inefficient units can be ranked in terms of effectiveness while efficient units, because of the same efficiency score being equal to one, have the same rank. Several methods have been proposed to rank efficient decision making units (DMUs). Each of these methods have certain weaknesses such as the infeasibility of the model, instability, the lack of non-extreme DMUs ranking, computational complexity, etc. In this paper, we present an alternative method that does not have the disadvantages of existing ranking techniques. The new approach is based on the evaluation of new DMUs corresponding to the efficient DMU. Also, some theorems are provided to show that the proposed model for ranking the DMUs is feasible and bounded. For this purpose, some examples are illustrated to show its difference with other methods.
Keywords: data envelopment analysis; DEA; efficient units; virtual ideal unit; virtual anti-ideal unit; new DMUs; distance; norm 1; efficiency score; ranking.
Joint pricing and inventory control modelling for obsolescent products: a case study of the telecom industry
by Mohammad Reza Sadeghi Moghadam, Isa Nakhai Kamalabadi, Bahareh Karbasian
Abstract: The current pricing context calls for better, faster and more precise pricing decision makings than ever before. These in turn, oblige companies to take a new stance with respect to the role of pricing in today's overwhelming and complex marketing context. Similarly, decisions related to inventory control and types of goods are strongly linked to pricing as well. The aim of this paper is to present a mathematical programming model for joint inventory control and pricing for the bundling of obsolescent items. To this end, a mathematical programming model was developed following a comprehensive review of the literature in this area. The validity of the proposed model was then tested in the telecommunications industry as a case study. According to the obtained results, the proposed model had a fairly good validity.
Keywords: inventory control; pricing; obsolescent product; mathematical programming; telecom; bundling.
Analysing the impact of agile supply chain on firms' sales performance with moderating effect of technological-integration
by M.D. Sarwar-A Alam, Daoping Wang, Abdul Waheed, Muhammad Shahid Khan, Muhammad Farrukh
Abstract: Agility has become a key driver for all business operations, including supply chain (SC) operations to convene the requirements of the customers in a timely manner. The concept of agility with respect to SC is accelerating therefore sparse literature accessible on such domain, especially with incorporation of technology (TE) from developing economies. The current study investigates the linkages between distinct dimensions of the agile supply chain (ASC) and firms' sales performance (FSP) by adopting moderating effect of TE within SMEs of Bangladesh. Data collected from SC managers and evaluated using structural equation modelling. The findings affirmed the positive relationships between ASC and FSP along with positive connection of each dimension of ASC, i.e., alertness (ART), flexibility (FXB), decisiveness (DSV), swiftness (SWT), and accessibility (ACB). A positive influence of TE is found between ASC and FSP, respectively. This study presents insights for strategic SC management to focus ASC and TEs' capabilities in order to optimise FSP in today's customer-oriented era.
Keywords: supply chain agility; firms' performance; empirical findings; SMEs of Bangladesh.
Blockchain-enabled technology: the emerging technology set to reshape and decentralise many industries
by Mohsen Attaran, Angappa Gunasekaran
Abstract: The past few years have seen an explosion in the business use of blockchain. The technology has great potential to drive simplicity and efficiency in financial services, and it is poised to drive the next wave of financial service innovation. Interest in exploiting blockchain in other industries, such as manufacturing and healthcare, is increasing, and deployments are gaining momentum. Yet, the adoption rate is slow, and organisations are only beginning to scratch the surface in regards to the potential applications of this technology. Implemented properly, the business benefits can be substantial. This article explores the changing dimensions of blockchain, highlights the importance of this technology, reviews its timeline from inception to maturity, identifies determinants of implementation success, and covers some of the potential benefits of this technology. Finally, this study highlights the successful implementation of blockchain solutions in the manufacturing and service industries.
Keywords: blockchain distributed ledger technology; P2P networks; public key cryptography; sharing economy; neighbourhood micro-grids; machine to machine transactions; machine to machine; M2M; bitcoins.