Ranking bank branches using DEA and multivariate regression models (Q2627634)

Summary: Service companies continually seek improved methods to measure the performance of their organisations because they are committed to improve efficiency and effectiveness in their operating units. Managers generally regard conventional methods inadequate. DEA has proven itself to be both theoretically sound framework for performance measurement and an acceptable method by those being measured. This paper assesses bank branches efficiency using DEA technique and multivariate regression techniques. Here, we proposed two multivariate regression models. In model (1), we used the exact data and in model (2), we used weighted data for fitting the regression equation. Weights were attributed to input variables based on group analytic hierarchy process. The efficiency of this approach is tested with application in bank branches. According to the results, weighted multivariate regression model has more advantages over conventional methodologies. LINGO software is used for obtaining efficiency scores in DEA.