UNSPECIFIED (2001) Validating absolute weight bounds in Data Envelopment Analysis (DEA) models. JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY, 52 (2). pp. 221-225. ISSN 0160-5682

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Abstract

The Charnes, Cooper and Rhodes (CCR) DEA model and its linear forms maximise the efficiency of the assessed decision making unit (DMU) and at the same time, the ratio of this efficiency to the maximum efficiency taken across all the DMUs, the latter naturally always being equal to one. It has been shown recently that, in the presence of absolute weight bounds, these models may not maximise the ratio of these efficiencies, a fact that may cause problems with the interpretation and use of the optimal primal and dual solutions. For example, an inefficient DMU may have greater efficiency than its target unit for some weights. This paper investigates the problem in greater detail; it shows that, in the linear DEA model maximising the total virtual output of the assessed DMU, the problem occurs only if upper bounds are imposed on the output weights. A similar result is established fur the model that minimises the total virtual input.

Item Type:	Journal Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Journal or Publication Title:	JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY
Publisher:	NATURE PUBLISHING GROUP
ISSN:	0160-5682
Date:	February 2001
Volume:	52
Number:	2
Number of Pages:	5
Page Range:	pp. 221-225
Publication Status:	Published
URI:	http://wrap.warwick.ac.uk/id/eprint/12424

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