Deriving common set of weights in the presence of the undesirable inputs: A DEA based approach

M Eyni, M Maghbouli - 2014 - sid.ir
2014sid.ir
Abstract Data Envelopment Analysis (DEA) as a non-parametric method for EFFICIENCY
measurement allows decision making units (DMUs) to select the most advantageous weight
factors in order to maximize their EFFICIENCY scores. In most practical applications of DEA
presented in the literature, the presented models assume that all inputs are fully desirable.
However, in many real situations UNDESIRABLE INPUT s are part of the production
process. In order to deal with UNDESIRABLE INPUT s, this paper changes the …
Abstract
Data Envelopment Analysis (DEA) as a non-parametric method for EFFICIENCY measurement allows decision making units (DMUs) to select the most advantageous weight factors in order to maximize their EFFICIENCY scores. In most practical applications of DEA presented in the literature, the presented models assume that all inputs are fully desirable. However, in many real situations UNDESIRABLE INPUT s are part of the production process. In order to deal with UNDESIRABLE INPUT s, this paper changes the UNDESIRABLE INPUT s to be desirable ones by reversing, then a COMPROMISE SOLUTION approach is proposed to generate a common set of weights under DEA framework. The DEA efficiencies obtained with the most favorable weights to each DMU are treated as the target efficiencies of DMUs. Based on the generalized measure of distance, three types of DEA-based EFFICIENCY score programming can be derived. The proposed approach is then applied to real-world data set that characterize the performance of seven types of chemical activities.
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