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Hybrid approach combining Data Envelopment Analysis and SOM to Evaluate the Efficiency of Incheon Port

  • Journal of Knowledge Information Technology and Systems
  • Abbr : JKITS
  • 2011, 6(5), pp.65-73
  • Publisher : Korea Knowledge Information Technology Society
  • Research Area : Interdisciplinary Studies > Interdisciplinary Research
  • Published : October 31, 2011

Hong Han Kuk 1 Lee Chang Yeol 1

1동의대학교

Candidate

ABSTRACT

Benchmarking of Ports is an important issue facing port management. Data envelopment analysis (DEA), which is a multi-factor productivity measurement tool is generally used in assessing the relative efficiency of homogeneous units and setting benchmark for inefficient units. DEA is a methodology of comparing the relative efficiency of each decision making unit(DMU) by comparing it with other DMUs having similar input and output structure, and is specially very useful when a form of production function of each DMU such as a port is not known. DEA provides the extent of inefficiency of DMUs, which is practically useful information (like the efficiency score and reference sets) required to improve efficiency. DEA, a non-parametric productivity analysis tool, has become an accepted approach for assessing efficiency in a wide range of fields. Despite of its extensive applications, some features of DEA remain bothersome. DEA offers no guidelines to where relatively inefficient DMU(Decision Making Unit) improve since a reference set of an inefficient DMU consists of several efficient DMUs and it doesn't provide a stepwise path for improving the efficiency of each inefficient DMU considering the difference of efficiency. We aim to show that DEA can be used to evaluate the efficiency of Ports and suggest the methodology which overcomes the limitation of DEA through hybrid analysis utilizing DEA along with SOM.

Citation status

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