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Computation of efficient targets in DEA models with production trade-offs and weight restrictions

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Podinovski, V. V.. (2007) Computation of efficient targets in DEA models with production trade-offs and weight restrictions. European Journal of Operational Research, Vol.181 (No.2). pp. 586-591. ISSN 0377-2217

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Official URL: http://dx.doi.org/10.1016/j.ejor.2006.06.041

Abstract

Recently new models of data envelopment analysis (DEA) were introduced that incorporate production trade-offs between inputs and outputs or based on them weight restrictions. In this paper, we develop a computational procedure suitable for the practical application of such models. We show that the standard two-stage optimisation procedure used in DEA to test the full efficiency of units and identify their efficient targets may work incorrectly in the new models. The modified procedure consists of three stages: the first evaluates the radial efficiency of the unit, the second identifies its efficient target, and the third its reference set of efficient peers. Each stage requires solving one linear program for each unit. (c) 2006 Elsevier B.V. All rights reserved.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Social Sciences > Warwick Business School > Operational Research & Management Sciences
Journal or Publication Title: European Journal of Operational Research
Publisher: Elsevier Science BV
ISSN: 0377-2217
Date: 1 September 2007
Volume: Vol.181
Number: No.2
Number of Pages: 6
Page Range: pp. 586-591
Identification Number: 10.1016/j.ejor.2006.06.041
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
URI: http://wrap.warwick.ac.uk/id/eprint/32101

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