Benchmarking bank branches : A dynamic DEA approach

Nowadays, appraisal of performance, benchmark identification and determining policies for the survival of the organization is of interest to managers. Data Envelopment Analysis is a method for performing assessments, including the recognition of efficient decision making units and introducing benchmarks for the inefficient ones. Sometimes, the performance of organizations not only depends on the period under evaluation alone, but is also under the influence of production of the former periods. In this paper, a dynamic DEA model is presented to evaluate bank branches, when there are dependence between different time periods. The proposed model is applied for one of Iranian commercial banks and benchmarks which shows the shortest path to efficiency frontier are recognized.