Advancing Organizational Efficiency: A Novel Dynamic Network DEA for Strategic Carry-Over Allocation

Carryover activities in dynamic DEA play a crucial role in transmitting information between periods and maintaining the continuity of resources from one period to the next within organizational processes. These variables reflect the impact of past decisions on current and future performance. In the literature of Dynamic DEA, carryovers typically connect two consecutive periods. However, existing models are limited in that they do not account for carryover variables that may persist beyond the immediate subsequent period, nor do they provide decision-makers the flexibility to strategically allocate resources over multiple periods. This paper introduces a novel dynamic network DEA (DNDEA) model within the Slack-Based Measure (SBM) framework, which optimizes the allocation of carryovers beyond consecutive periods and addresses this gap by enabling discretionary allocation by Decision-Makers (DM). Our model not only enhances overall efficiency evaluation but also identifies maximum inefficiency within a network system across multiple evaluation periods. To validate the proposed model, we perform a numerical example focused on the performance assessment of Iranian bank branches using Dynamic DEA techniques. Our findings reveal significant variations in efficiency among the branches, with DMU4 achieving the highest efficiency score of 1.000 and DMU10 the lowest at 0.617. Notably, the proposed model demonstrates superior discriminative power compared to the Dynamic Network Slack-Based Measure (DNSBM), providing more precise insights into resource allocation and operational inefficiencies.