Efficiency Analysis of Commercial Bank Branches Using a Common Set of Weights in DEA

Authors

  • Seyyed Moein Hessam * Department of Business Administration, Faculty of Business Administration, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

https://doi.org/10.48314/ijorai.v1i2.58

Abstract

This study investigates the operational efficiency of 375 commercial bank branches during the fiscal year 2017 by employing advanced Data Envelopment Analysis (DEA) methodologies. Each branch is considered a Decision Making Unit (DMU) consuming multiple inputs to generate outputs. To address the multi-dimensional nature of performance evaluation, both the lexicographic method and a weighted linearized approximation of the Common Set of Weights (CSW) DEA model are applied. The lexicographic approach prioritizes objectives sequentially, reflecting decision-makers' preferences, while the weighted linearized model allows simultaneous consideration of all objectives with adjustable importance weights. The weighted model mitigates computational and feasibility challenges inherent in the lexicographic approach, enabling efficient analysis of large-scale data. The results provide valuable insights into relative branch efficiency, identify best-performing units, and offer a practical framework for resource allocation and performance improvement in the banking sector.

Keywords:

Data envelopment analysis, Common set of weights, Bank branch performance

References

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Published

2025-06-08

Issue

Vol. 1 No. 2 (2025): International Journal of Operations Research and Artificial Intelligence (IJORAI)

Section

Articles

How to Cite

Hessam, S. M. . (2025). Efficiency Analysis of Commercial Bank Branches Using a Common Set of Weights in DEA. International Journal of Operations Research and Artificial Intelligence , 1(2), 61-70. https://doi.org/10.48314/ijorai.v1i2.58

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