Ranking of units on the DEA frontier with common weights

Authors:
Fuh-Hwa Franklin Liu;Hao Hsuan Peng
Affiliations:
Department of Industrial Engineering & Management, National Chiao Tung University, 1001 Ta Shueh Road, Hsin Chu 300, Taiwan, Republic of China;Department of Industrial Engineering & Management, National Chiao Tung University, 1001 Ta Shueh Road, Hsin Chu 300, Taiwan, Republic of China
Venue:
Computers and Operations Research
Year:
2008

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Abstract

Conventional data envelopment analysis (DEA) assists decision makers in distinguishing between efficient and inefficient decision-making units (DMUs) in a homogeneous group. However, DEA does not provide more information about the efficient DMUs. This research proposes a methodology to determine one common set of weights for the performance indices of only DEA efficient DMUs. Then, these DMUs are ranked according to the efficiency score weighted by the common set of weights. For the decision maker, this ranking is based on the optimization of the group's efficiency.