Ranking units in DEA based on efficiency intervals and decision‐maker's preferences |
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Authors: | Ali Asghar Foroughi Belaïd Aouni |
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Affiliation: | 1. Department of Mathematics, University of Qom, , Qom, 3716146611 Iran;2. Decision Aid Research Group, School of Commerce and Administration, Faculty of Management, Laurentian University, , Sudbury, Ontario, P3E 2C6 Canada |
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Abstract: | Data Envelopment Analysis (DEA) uses the best favorable weight set for the inputs and outputs of each decision‐making unit (DMU) to obtain its best possible score. Hence, this score can be considered as an upper bound of the real efficiency score. If we also use the least favorable weight set of each DMU, then a lower bound of the efficiency score can also be obtained. So, instead of one score, we can find an interval that gives all possible values of the efficiency score for each DMU. The aim of this paper is to propose an approach for determining efficiency intervals and setting up a full ranking of DMUs based on these intervals. We incorporate explicitly the decision‐maker's preferences in two phases. The first phase is for obtaining efficiency intervals, by introducing some restrictions on the input and output weights. The second one is for ranking the intervals based on the combination of the lower and the upper bounds of the efficiency intervals. The developed formulations will be illustrated through some numerical examples. |
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Keywords: | data envelopment analysis ranking efficiency intervals decision‐maker's preferences |
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