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Efficiency intervals, rank intervals and dominance relations of decision-making units with fixed-sum outputs
- Source :
- European Journal of Operational Research. 292:238-249
- Publication Year :
- 2021
- Publisher :
- Elsevier BV, 2021.
-
Abstract
- How to evaluate the performance of decision-making units (DMUs) with fixed-sum outputs is a timely and challenging question in data envelopment analysis (DEA). Two major challenges are (1) how to determine a common equilibrium efficient frontier and (2) how to deal with multiple feasible equilibrium efficient frontiers. This paper first uses a simple dataset to illustrate the possibility of multiple equilibrium efficient frontiers and the corresponding major differences in the DMUs’ efficiencies and rankings resulting from these frontiers. We address these challenges by considering all feasible equilibrium efficient frontiers and develop several models to obtain the corresponding efficiency intervals, ranking intervals and dominance relations for the DMUs with fixed-sum outputs. We illustrate the proposed approach with two numerical examples and show that it gives more informative results than previous DEA approaches. For example, there are interesting dominance relations between DMUs under the fixed-sum outputs; yet these relations do not exist when there are no fixed-sum outputs. In addition, the efficiency ranges and ranking intervals can be narrowed by accounting for policy suggestions such as adjustment constraints of fixed-sum outputs for DMUs.
- Subjects :
- 050210 logistics & transportation
Mathematical optimization
021103 operations research
Information Systems and Management
Multiple equilibrium
General Computer Science
Computer science
05 social sciences
0211 other engineering and technologies
Efficient frontier
02 engineering and technology
Dominance relations
Management Science and Operations Research
Industrial and Manufacturing Engineering
Efficiency interval
Dominance (economics)
Modeling and Simulation
0502 economics and business
Data envelopment analysis
Fixed-sum outputs
Rank interval
Data envelopment analysis (DEA)
Subjects
Details
- ISSN :
- 03772217
- Volume :
- 292
- Database :
- OpenAIRE
- Journal :
- European Journal of Operational Research
- Accession number :
- edsair.doi.dedup.....84dae6ea39fce7cbae33f0e53b537221