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Ranking efficient decision making units in data envelopment analysis based on reference frontier share

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  • Rezaeiani, M.J.
  • Foroughi, A.A.

Abstract

Data envelopment analysis (DEA) is a powerful technique for performance evaluation of decision making units (DMUs). Ranking efficient DMUs based on a rational analysis is an issue that yet needs further research. The impact of each efficient DMU in evaluation of inefficient DMUs can be considered as additional information to discriminating among efficient DMUs. The concept of reference frontier share is introduced in which the share of each efficient DMU in construction of the reference frontier for evaluating inefficient DMUs is considered. For this purpose a model for measuring the reference frontier share of each efficient DMU associated with each inefficient one is proposed and then a total measure is provided based on which the ranking is made. The new approach has the capability for ranking extreme and non-extreme efficient DMUs. Further, it has no problem in dealing with negative data. These facts are verified by theorems, discussions and numerical examples.

Suggested Citation

  • Rezaeiani, M.J. & Foroughi, A.A., 2018. "Ranking efficient decision making units in data envelopment analysis based on reference frontier share," European Journal of Operational Research, Elsevier, vol. 264(2), pages 665-674.
    • Handle: RePEc:eee:ejores:v:264:y:2018:i:2:p:665-674
    DOI: 10.1016/j.ejor.2017.06.064
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