Origins, uses of, and relations between goal programming and data envelopment analysis

✍ Scribed by W.W. Cooper

• Book ID: 102499710
• Publisher: John Wiley and Sons
• Year: 2005
• Tongue: English
• Weight: 134 KB
• Volume: 13
• Category: Article
• ISSN: 1057-9214
• DOI: 10.1002/mcda.370

✦ Synopsis

Origins and uses of 'goal programming' and 'data envelopment analysis' (DEA) are identified and discussed. The purpose of this paper is not only to review some of the history of these developments, but also to show some of their uses (e.g. in statistical regression formulations) in order to suggest paths for possible further developments. Turning to how the two types of models relate to each other, the 'additive model' of DEA is shown to have the same structure as a goal programming model in which only 'one-sided deviations' are permitted. A way for formally relating the two to each other is then provided. However, the objectives are differently oriented because goal programming is directed to future performances as part of the planning function whereas DEA is directed to evaluating past performances as part of the control function of management. Other possible ways of comparing and combining the two approaches are also noted including statistical regressions that utilize goal programming to ensure that the resulting estimates satisfy the multi-criteria conditions that are often encountered in managerial applications.

Both goal programming and DEA originated in actual applications that were successfully addressed. The research was then generalized and published. This leads to what is referred to as an 'applications-driven theory' strategy for research that is also described in this paper.