A Hybrid Approach for Measuring Productivity in the Global Fitness Industry by Using Grey and DEA Model

Chia Nan Wang, Xuan Tho Nguyen

Abstract


Maintaining sustainable development is becoming an important issue for the fitness industry. To solve this problem, the decision-makers need to understand the performance of this industry. This research proposes a hybrid approach based on grey model (GM) and Malmquist productivity index (MPI), to measure operational performance of worldwide fitness manufactures over several periods. From that, decision making units (DMUs) and managers can improve business performance and build a sustainable development strategy. This research conducted on 15 fitness manufactures, by the use of several input and output variables. GM was used to predict the future value of these variables. Following the MPI was used to evaluate performance of all DMUs. The MPI results showed some manufactures become more efficient, while others become less efficient. The results provide past-future insights for decision-maker to sustain fitness requirement manufacturing. The study will be a useful reference for other industries as well.


Keywords


Fitness industry; performance; GM; DEA; MPI.

Full Text:

PDF

References


Research and Market. “Fitness Equipment Manufacturing”. Internet: http://www.researchandmarkets.com/reports/1052502/fitness_equipment_manufacturing [May. 15, 2017].

Allied market research. “Global Fitness Equipment Market — Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2014–2020”. Internet: https://www.alliedmarketresearch.com/fitness-equipment-market [May. 15, 2017].

Zion market research. “Global fitness equipment market, 2015 – 2021”. https://www.zionmarketresearch.com/news/fitness-equipment-market [Aug. 20, 2017].

Hoovers. “Fitness Equipment Manufacturing Industry Overview”. Internet: http://www.hoovers.com/industry-facts.fitness-equipment-manufacturing.1201.html [May. 18, 2017].

Porter, M. E. Competitive strategy: Techniques for analyzing industries and competitors; New York: Simon and Schuster, 2008.

Consumeraffairs. “Compare Reviews for Fitness Equipment Companies”. Internet: https://www.consumeraffairs.com/health/fitness-equipment [June. 15, 2016].

Google Finance. “Financial statement”. Available online: http://www.google.com/finance [June. 15, 2016].

Ju-Long, D. “Control problems of grey systems”, Systems & Control Letters, vol. 1(5), pp. 288-294, 1982.

Ju-Long, D. “Introduction to grey system theory”, The Journal of grey system, vol. 1(1), pp. 1-24, 1989.

Ren, J.; Gao, S.; Tan, S.; Dong, L. Prediction of the yield of biohydrogen under scanty data conditions based on GM (1,N). Int. J. Hydrog. Energy, vol. 38, pp. 13198–13203, 2013

Charnes, A.; Cooper, W. W.; Rhodes, E. “Measuring the efficiency of decision making units”, European journal of operational research, vol. 2(6), pp. 429-444, 1978.

Hui, S.; Yang, F.; Li, Z. H. E. N. Z. H. E. N.; Liu, Q.; Dong, J. “Application of grey system theory to forecast the growth of larch”, International Journal of Information and Systems Sciences, vol. 5(3-4), pp. 522-527, 2009.

Shi, H. “A grey fuzzy comprehensive model for evaluation of teaching quality”. In Test and Measurement, 2009. ICTM 2009. IEEE international conference, vol. 2, pp. 244-247), 2009.

Lin, C. S.; Liou, F. M.; Huang, C. P. “Grey forecasting model for CO2 emissions: a Taiwan study” Applied Energy, vol. 88(11), pp. 3816-3820, 2011.

Wu, W. Y.; Tsai, H. J.; Cheng, K. Y.; Lai, M. “Assessment of intellectual capital management in Taiwanese IC design companies: using DEA and the Malmquist productivity index”, Journal of R&D Management, vol. 36(5), pp. 531-545, 2006.

Wang, C. N.; Nguyen, X. T.; Wang, Y. H. Automobile industry strategic alliance partner selection: The application of a hybrid DEA and grey theory model. Sustainability, vol. 8(2), pp. 173, 2016.

Liang, S. K.; Jiang, J. L.; Lai, C. T. “Effects of integrative strategies on the production efficiency of biotech firms: A data envelopment analysis”, International Journal of Management, vol. 25(1), pp. 140-148, 2008.

Chen, J. F.; Hsieh, P. Y.; Chen, H. W. “Evaluation of efficiency of capital sources utilization and company performance of E-Life mall in Kaohsiung city based on data envelopment analysis”, In Computational Aspects of Social Networks (CASoN), 2010 IEEE International Conference, pp. 278-283, 2010.

Mathur, T.; Paul, U. K. “Performance appraisal of Indian non-life insurance companies: A DEA approach”, Universal Journal of Management, vol. 2(5), pp. 173-185, 2014.

Fuentes, R.; Fuster, B.; Lillo-Bañuls, A. “A three-stage DEA model to evaluate learning-teaching technical efficiency: Key performance indicators and contextual variables”, Expert Systems with Applications, vol. 48, pp. 89-99, 2016.

Deloitte. International accounting standards (IAS). Internet: http://www.iasplus.com/en/standards/ias / [May. 30, 2017].

Stevenson, W. J., & Sum, C. C. Operation management: an Asian perspective. (9th ed), New York: McGraw-Hill Education, 2010.

G. D. Li, S. Masuda, M. Nagai, “An Optimal Prediction Model using Taylor Approximation Method”, Journal of Grey System, vol. 11, pp. 91-100, 2011.

Coelli, T.J.; Rao, D.S.P.; O’Donnell, C.J.; & Battese, G.E. An Introduction to Efficiency and Productivity Analysis. (2nd ed). Philadelphia, PA: Springer, 2005.

Golany, B.; Roll, Y. “An application procedure for DEA”, Omega, vol. 17(3), pp. 237-250, 1989.

Pruessner, J. C.; Kirschbaum, C.; Meinlschmid, G.; Hellhammer, D. H. “Two formulas for computation of the area under the curve represent measures of total hormone concentration versus time-dependent change”, Psychoneuroendocrinology, vol. 28(7), pp. 916-931, 2003.

Lo, F. Y.; Chien, C. F; Lin, J. T. “A DEA study to evaluate the relative efficiency and investigate the district reorganization of the Taiwan power company”, IEEE Transactions on Power Systems, vol. 16(1), pp. 170-178, 2001.

Banker, R.D.; Charnes, A.; Cooper, W.W. Some models for estimating technological and scale inefficiencies in data envelopment analysis. Manag. Sci, vol. 30, pp. 1078–1092, 1984.


Refbacks

  • There are currently no refbacks.


 
  
 

 

  


About ASRJETS | Privacy PolicyTerms & Conditions | Contact Us | DisclaimerFAQs 

ASRJETS is published by (GSSRR).