Evaluating the Ability of Interval Fuzzy and Robust Data Envelopment Analysis Models to determine the efficiency of Broiler Chicken Breeding Units in Khuzestan Province

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Mardani Najafabadi Mostafa; Abdeshahi Abas; GHORBANI MOHAMMAD REZA; Zebari Yasamin

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Journal: AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL) Year:2019 | Volume:13 | Issue:3 Page(s): 29-56

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Title

Evaluating the Ability of Interval Fuzzy and Robust Data Envelopment Analysis Models to determine the efficiency of Broiler Chicken Breeding Units in Khuzestan Province

Author(s)

Mardani Najafabadi Mostafa | Abdeshahi Abas | GHORBANI MOHAMMAD REZA | Zebari Yasamin | Issue Writer Certificate

Keywords

Data Envelop AnalysisQ1

Monte Carlo simulationQ1

EfficiencyQ2

Uncertainty and KhuzestanQ1

Abstract

Introduction: poultry is one of strategic and economic agricultural products in Iran due to its important role in gross domestic product, employment and export. Therefore, investigating the Efficiency of broiler chicken breeding units and trying to improve their Efficiency and optimum use of resources have special importance. Several techniques are used to evaluate decisionmaking units in DMUs with a restricted multiplier. DEA is recognized as a methodology widely used to evaluate the relative Efficiency of a set of decision-making units (DMUs) involved in a production process. Although DEA is a powerful tool to used measure Efficiency, there are some restrictions that need to be considered. One important restriction involves the sensitivity of DEA to the specific data under analysis. In this paper, the interval fuzzy and robust data envelopment analysis models are used to concentrate on DEA with uncertain data for poultry farms in Khuzestan province. To this end, the achievement of sub-objectives such as estimating the optimal use of inputs in inefficient units and comparing the two methods of RDEA and FIDEA in terms of their capability against uncertain data is also considered. Materials and Methods Data envelopment analysis (DEA) traditionally assumes that input and output data of the different decision making units (DMUs) are measured with precision. However, in many real applications inputs and outputs are often imprecise. This paper applied RDEA and FIDEA models using imprecise data represented by an uncertainty set in estimating the Efficiency of broiler chicken breeding units. RDEA method is based on the robust optimization approach of Bertsimas and Sim to seek maximization of Efficiency under uncertainty (as does the original DEA model). In this approach, it is possible to vary the degree of conservatism to allow a decision maker to understand the tradeoff between a constraint’ s protection and its Efficiency. The method incorporates the degree of conservatism in the maximum probability bound for constraint violation. 105 of broiler chicken producers were selected by simple random sampling and necessary data were collected by completing a questionnaire. Results and Discussion: In this section, the results of evaluating DMUs are presented which consists of eight inputs and tree outputs. The results showed that the average technical Efficiency of poultry farms in RDEA model at three probability levels of 10, 50 and 100% was 88%, 91% and 93%, respectively. In fact, the same amount of output can be achieved by improving production management and by reducing 12%, 9% and 7% of the total inputs respectively. In the FIDEA model, if poultry use 20% of their resources optimally, the average Efficiency of traditional poultry varies from 88 to 96% and in semi-traditional poultry from 80 to 91%. Inputs such as cost of drug, cost of electricity, cost of water and area in semi-traditional poultry farms and inputs such as area and labor force in traditional poultry farms are the most technically inefficient inputs and need to save to be closer to efficient units. Conclusions: Evaluating the performance of many activities by a traditional DEA approach requires precise input and output data. However, input and output data in real-world problems are often imprecise or vague. To deal with imprecise data, this study uses RDEA and FIDEA approaches as a way to quantify vague data in DEA models. It is shown that the approaches can be a useful tool in DEA models without introducing additional complexity into the problem. A case study of broiler chicken breeding units is presented to illustrate the reliability and flexibility of the models. The problem was solved for a range of given uncertainty and constraint violation probability levels using the GAMS software. As a result, Efficiency decreases as the constraint violation probability increased. Additionally the RDEA approach provides both a deterministic guarantee about the Efficiency level of the model, as well as a probabilistic guarantee that is valid for all symmetric distributions. Since the Monte Carlo simulation model proved more capable of the RDEA model than the DEA and FIDEA models, it seems appropriate to use the results to improve the conditions of inefficient units.

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APA: Copy

Mardani Najafabadi, Mostafa, Abdeshahi, Abas, GHORBANI, MOHAMMAD REZA, & Zebari, Yasamin. (2019). Evaluating the Ability of Interval Fuzzy and Robust Data Envelopment Analysis Models to determine the efficiency of Broiler Chicken Breeding Units in Khuzestan Province. AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL), 13(3 ), 29-56. SID. https://sid.ir/paper/124649/en

Vancouver: Copy

Mardani Najafabadi Mostafa, Abdeshahi Abas, GHORBANI MOHAMMAD REZA, Zebari Yasamin. Evaluating the Ability of Interval Fuzzy and Robust Data Envelopment Analysis Models to determine the efficiency of Broiler Chicken Breeding Units in Khuzestan Province. AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL)[Internet]. 2019;13(3 ):29-56. Available from: https://sid.ir/paper/124649/en

IEEE: Copy

Mostafa Mardani Najafabadi, Abas Abdeshahi, MOHAMMAD REZA GHORBANI, and Yasamin Zebari, “Evaluating the Ability of Interval Fuzzy and Robust Data Envelopment Analysis Models to determine the efficiency of Broiler Chicken Breeding Units in Khuzestan Province,” AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL), vol. 13, no. 3 , pp. 29–56, 2019, [Online]. Available: https://sid.ir/paper/124649/en

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