Ranking decision making units by imposing a minimum weight restriction in the data envelopment analysis

✍ Scribed by Ying-Ming Wang; Ying Luo; Liang Liang

• Publisher: Elsevier Science
• Year: 2009
• Tongue: English
• Weight: 754 KB
• Volume: 223
• Category: Article
• ISSN: 0377-0427
• DOI: 10.1016/j.cam.2008.01.022

✦ Synopsis

It has been widely recognized that data envelopment analysis (DEA) lacks discrimination power to distinguish between DEA efficient units. This paper proposes a new methodology for ranking decision making units (DMUs). The new methodology ranks DMUs by imposing an appropriate minimum weight restriction on all inputs and outputs, which is decided by a decision maker (DM) or an assessor in terms of the solutions to a series of linear programming (LP) models that are specially constructed to determine a maximin weight for each DEA efficient unit. The DM can decide how many DMUs to be retained as DEA efficient in final efficiency ranking according to the requirement of real applications, which provides flexibility for DEA ranking. Three numerical examples are investigated using the proposed ranking methodology to illustrate its power in discriminating between DMUs, particularly DEA efficient units.