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JACIII Vol.30 No.1 pp. 67-77
doi: 10.20965/jaciii.2026.p0067
(2026)

Research Paper:

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A Slacks-Based DEA-R Approach with an Application to Japanese Banks

Xu Wang*,† ORCID Icon, Hiroki Iwamoto** ORCID Icon, and Takashi Hasuike*** ORCID Icon

*Faculty of Informatics, Gunma University
4-2 Aramakicho, Maebashi, Gunma 371-8510, Japan

†Corresponding author

**Division of Socio-Cultural Studies, Waseda University
3-4-1 Okubo, Shinjuku-ku, Tokyo 169-8555, Japan

***Department of Industrial and Management Systems Engineering, Waseda University
3-4-1 Okubo, Shinjuku-ku, Tokyo 169-8555, Japan

Received:
June 4, 2025
Accepted:
August 14, 2025
Published:
January 20, 2026
Creative Commons License
Keywords:
data envelopment analysis, ratio analysis, negative data, slacks-based model, Japanese banks
Abstract

Data envelopment analysis (DEA) is a powerful approach for evaluating the relative efficiency of decision-making units with multiple inputs and outputs. Integrating DEA with ratio analysis has become essential because of the increasing prevalence of ratio data (e.g., return on assets) in practical applications. This study develops a novel DEA-R model and the RAM-R model, which combines the well-established range-adjusted measure (RAM) with ratio analysis. The model effectively handles ratio data, accommodates negative values, and accounts large variations across indicators, thereby enhancing flexibility and robustness in efficiency evaluation. A case study of 93 Japanese banks compares the RAM-R model with the RAM and another slacks-based DEA-R (the slacks-based measure-R and SBM-R) models using ratio data to demonstrate its effectiveness in evaluating efficiency.

Cite this article as:
X. Wang, H. Iwamoto, and T. Hasuike, “A Slacks-Based DEA-R Approach with an Application to Japanese Banks,” J. Adv. Comput. Intell. Intell. Inform., Vol.30 No.1, pp. 67-77, 2026.
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Last updated on Jan. 21, 2026