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A Complete Efficiency Ranking of Decision Making Units in Data Envelopment Analysis

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Abstract

The efficiency measures provided by DEA can be used for ranking Decision Making Units (DMUs), however, this ranking procedure does not yield relative rankings for those units with 100% efficiency. Andersen and Petersen have proposed a modified efficiency measure for efficient units which can be used for ranking, but this ranking breaks down in some cases, and can be unstable when one of the DMUs has a relatively small value for some of its inputs. This paper proposes an alternative efficiency measure, based on a different optimization problem that removes the difficulties.

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Mehrabian, S., Alirezaee, M.R. & Jahanshahloo, G.R. A Complete Efficiency Ranking of Decision Making Units in Data Envelopment Analysis. Computational Optimization and Applications 14, 261–266 (1999). https://doi.org/10.1023/A:1008703501682

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  • DOI: https://doi.org/10.1023/A:1008703501682