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Sensitivity in DEA: an algorithmic approach

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  • Luka Neralić

    (University of Zagreb)

  • Richard E. Wendell

    (University of Pittsburgh)

Abstract

This paper considers an algorithmic approach to sensitivity in Data Envelopment Analysis for the CCR and Additive models. Specifically, it gives sufficient conditions that preserve the efficiency of a decision-making unit (DMU) under arbitrary perturbations of the inputs and/or outputs of the DMUs. The paper illustrates the results for the Additive model.

Suggested Citation

  • Luka Neralić & Richard E. Wendell, 2019. "Sensitivity in DEA: an algorithmic approach," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 27(4), pages 1245-1264, December.
    • Handle: RePEc:spr:cejnor:v:27:y:2019:i:4:d:10.1007_s10100-018-0587-y
    DOI: 10.1007/s10100-018-0587-y
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    References listed on IDEAS

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    1. 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.
    2. Charnes, A. & Neralic, L., 1990. "Sensitivity analysis of the additive model in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 48(3), pages 332-341, October.
    3. W. Cooper & Shanling Li & L. Seiford & Kaoru Tone & R. Thrall & J. Zhu, 2001. "Sensitivity and Stability Analysis in DEA: Some Recent Developments," Journal of Productivity Analysis, Springer, vol. 15(3), pages 217-246, May.
    4. Dubravko Hunjet & Luka Neralić & Richard Wendell, 2015. "Evaluation of the dynamic efficiency of Croatian towns using Data Envelopment Analysis," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(3), pages 675-686, September.
    5. Banker, Rajiv D. & Cooper, William W. & Seiford, Lawrence M. & Thrall, Robert M. & Zhu, Joe, 2004. "Returns to scale in different DEA models," European Journal of Operational Research, Elsevier, vol. 154(2), pages 345-362, April.
    6. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
    7. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2006. "Introduction to Data Envelopment Analysis and Its Uses," Springer Books, Springer, number 978-0-387-29122-2, June.
    8. Richard E. Wendell, 1985. "The Tolerance Approach to Sensitivity Analysis in Linear Programming," Management Science, INFORMS, vol. 31(5), pages 564-578, May.
    9. A. Charnes & W. W. Cooper, 1968. "Structural sensitivity analysis in linear programming and an exact product form left inverse," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 15(4), pages 517-522, December.
    10. L Neralić & R E Wendell, 2004. "Sensitivity in data envelopment analysis using an approximate inverse matrix," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(11), pages 1187-1193, November.
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