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Modified piecewise linear DEA model

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  • Lotfi, F. Hosseinzadeh
  • Rostamy-Malkhalifeh, M.
  • Moghaddas, Z.

Abstract

Recently, Cook and Zhu have proposed the Piecewise Linear Data Envelopment Analysis (PL-DEA) model, a situation in which a generalization of the DEA methodology which incorporates piecewise linear functions of factors is considered. Standard DEA models provide an efficiency score and targets for an inefficient unit, but the PL-DEA model fails to produce acceptable targets. Thus, this issue has been considered in the piecewise linear CCR model, in which a non-increasing set of multipliers describe the weight function. Also, the piecewise linear CCR model has been enhanced by introducing two MIP models for a two-stage procedure in order to set targets precisely. Furthermore as it follows, the above-mentioned models are compared with each other and an example is provided for the sake of lucidity.

Suggested Citation

  • Lotfi, F. Hosseinzadeh & Rostamy-Malkhalifeh, M. & Moghaddas, Z., 2010. "Modified piecewise linear DEA model," European Journal of Operational Research, Elsevier, vol. 205(3), pages 729-733, September.
  • Handle: RePEc:eee:ejores:v:205:y:2010:i:3:p:729-733
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    References listed on IDEAS

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    1. Charnes, A. & Cooper, W. W. & Huang, Z. M. & Sun, D. B., 1990. "Polyhedral Cone-Ratio DEA Models with an illustrative application to large commercial banks," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 73-91.
    2. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    3. Cook, Wade D. & Zhu, Joe, 2009. "Piecewise linear output measures in DEA (third revision)," European Journal of Operational Research, Elsevier, vol. 197(1), pages 312-319, August.
    4. Thompson, Russell G. & Langemeier, Larry N. & Lee, Chih-Tah & Lee, Euntaik & Thrall, Robert M., 1990. "The role of multiplier bounds in efficiency analysis with application to Kansas farming," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 93-108.
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