Developing and training artificial neural networks using bootstrap data envelopment analysis for best performance modeling of sawmills in Ontario

Abstract

Purpose The measurement capabilities of the data envelopment analysis (DEA) models are used to train the artificial neural network (ANN) models for the best performance modeling of the sawmills in Ontario. The bootstrap DEA models measure robust technical efficiency scores and have benchmarking abilities, whereas the ANN models use abstract learning from a limited set of information and provide the predictive power. Design/methodology/approach The complementary modeling approaches of the DEA and the ANN provide an adaptive decision support tool for each sawmill. Findings The trained ANN models demonstrate promising results in predicting the relative efficiency scores and the optimal combination of the inputs and the outputs for three categories (large, medium and small) of sawmills in Ontario. The average absolute error in predicting the relative efficiency scores varies from 0.01 to 0.04, and the predicted optimal combination of the inputs (roundwood and employees) and the output (lumber) demonstrate that a large percentage of the sawmills shows less than 10% error in the prediction results. Originality/value The purpose of this study is to develop an integrated DEA-ANN model that can help in the continuous improvement and performance evaluations of the forest industry working under uncertain business environment.