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A classification of DEA models when the internal structure of the Decision Making Units is considered

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  • Lorenzo Castelli
  • Raffaele Pesenti
  • Walter Ukovich

Abstract

We classify the contributions of DEA literature assessing Decision Making Units (DMUs) whose internal structure is known. Starting from an elementary framework, we define the main research areas as shared flow, multilevel and network models, depending on the assumptions they are subject to. For each model category, the principal mathematical formulations are introduced along with their main variants, extensions and applications. We also discuss the results of aggregating efficiency measures and of considering DMUs as submitted to a central authority that imposes constraints or targets on them. A common feature among the several models is that the efficiency evaluation of the DMU depends on the efficiency values of its subunits thereby increasing the discrimination power of DEA methodology with respect to the black box approach. Copyright .Springer Science+Business Media, LLC 2010

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  • Lorenzo Castelli & Raffaele Pesenti & Walter Ukovich, 2010. "A classification of DEA models when the internal structure of the Decision Making Units is considered," Annals of Operations Research, Springer, vol. 173(1), pages 207-235, January.
    • Handle: RePEc:spr:annopr:v:173:y:2010:i:1:p:207-235:10.1007/s10479-008-0414-2
    DOI: 10.1007/s10479-008-0414-2
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