A Novel Multi-Sector, Multi-Period DEA Framework for Evaluating Bank Branch Efficiency

Articles in Press

Document Type : Research Paper

Authors

1 Assistant Prof, Department of Management, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.

2 Department of Management, Khatam University, Tehran, Iran

Abstract

From an economic perspective, efficiency refers to the optimal use of resources to produce the maximum possible output, highlighting its critical role in management systems. Managers generally strive to utilize resources effectively to maximize outputs and satisfy all stakeholders. This is particularly important in the Iranian banking industry, where high costs of fund maintenance make efficiency a central concern. In this study, considering the operational structure of Iranian banks, a five-sector model is proposed to illustrate the flow of activities within banks. Based on this structure, a mathematical model using Data Envelopment Analysis (DEA) is developed to evaluate the efficiency of the five sectors. A fuzzy-based approach is then introduced to solve the model. Application of the proposed model to 210 branches of a major Iranian bank indicates that, while the Services and Mobilization of Resources sectors demonstrate relatively high efficiency, the Management sector suffers from significant inefficiency. These findings highlight the need for focused managerial interventions to enhance operational performance in bank branches.

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Advances in Industrial Engineering

Articles in Press, Accepted Manuscript
Available Online from 24 January 2026

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