Application of Integrated Multiple Criteria Data Envelopment Analysis to Humanitarian Logistics Network Design

Abstract

This paper considers a humanitarian logistics network (HTLN) design problem, including the emergency relief facilities (ERFs) location-allocation decision for the efficient distribution of emergency supplies from the ERFs to the affected areas. A goal programming (GP) approach is applied to consider the multiple objectives simultaneously. Solving the GP model with a given weight assigned to each goal yields a single HTLN scheme, so there will be various schemes available by solving the GP with multiple values of the weights. For evaluating these schemes and identifying the most efficient one, we apply the data envelopment analysis (DEA) methods considering each scheme as a decision-making unit (DMU). Since the classical DEA (C-DEA) intrinsically aims to identify efficient DMUs and the efficient frontier, the use of C-DEA may not lead to a full ranking in many situations. There are several independent evaluation approaches to increasing discriminating power. Among them, this study integrates the multiple criteria DEA (MC-DEA) with the following three DEA methods, (i) stratification DEA (S-DEA), (ii) cross-efficiency DEA (CE-DEA), and (iii) super-efficiency DEA (SE-DEA), to make the most use of each method’s strengths. Through a case study of designing the HTLN system for South Carolina, the procedure of implementing the integrated multiple criteria DEA (IMC-DEA) method is demonstrated. It is observed that the IMC-DEA method performs well in terms of designing the HTLN system and would help the decision-makers consider more efficient options and make a final decision.

Keywords

Humanitarian logistics network / goal programming / decision-making unit / data envelopment analysis (DEA) / stratification DEA / cross efficiency DEA / super-efficiency DEA / multiple-criteria DEA

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