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DEA and Malmquist productivity indices for measuring group performance in two periods

Author

Listed:
  • Reza Shahverdi
  • Ali Ebrahimnejad

Abstract

Data envelopment analysis (DEA) is a method to estimate a relative efficiency of decision-making units (DMUs) performing similar tasks in a production system that consumes multiple inputs to produce multiple outputs. The Malmquist productivity index indicates the progress or regress of each decision-making unit in DEA. This index is based on two factors of efficiency change index and a technological change index. The Malmquist index compares any unit relative to other units and itself past situation. Therefore, this act is achieved in two time periods. In this article, we introduce an approach for calculating progress or regress for set of DMUs. In this method, the Malmquist productivity index is defined in order to set of decision-making units in two time periods. Here, we suppose that all units are divided into two groups. Then we calculate the rate of progress or regress each of two groups, relative to itself past position and others. Finally, this technique is used on the set of real data.

Suggested Citation

  • Reza Shahverdi & Ali Ebrahimnejad, 2014. "DEA and Malmquist productivity indices for measuring group performance in two periods," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 16(3), pages 382-395.
    • Handle: RePEc:ids:ijisen:v:16:y:2014:i:3:p:382-395
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