A slack-based measure of efficiency in context-dependent data envelopment analysis

Data envelopment analysis (DEA) has been proven as an excellent data-oriented performance evaluation method when multiple inputs and outputs are present in a set of peer decision-making units (DMUs). In the DEA literature, a context-dependent DEA is developed to provide finer evaluation results by e...

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Bibliographic Details
Published in:Omega (Oxford) 2005-08, Vol.33 (4), p.357-362
Main Authors: Morita, Hiroshi, Hirokawa, Koichiro, Zhu, Joe
Format: Article
Language:English
Subjects:
Applied sciences
Benchmarking
Benchmarks
Context-dependent
Data envelopment analysis
DEA
Decision support systems
Efficiency
Evaluation
Exact sciences and technology
Mathematical programming
Measurement
Operational research and scientific management
Operational research. Management science
Slack-based efficiency measure
Slack-based efficiency measure Context-dependent DEA Benchmarking
Studies
Citations: Items that cite this one
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Summary:Data envelopment analysis (DEA) has been proven as an excellent data-oriented performance evaluation method when multiple inputs and outputs are present in a set of peer decision-making units (DMUs). In the DEA literature, a context-dependent DEA is developed to provide finer evaluation results by examining the efficiency of DMUs in specific performance levels based upon radial DEA efficiency scores. In DEA, non-zero input and output slacks are very likely to present after the radial efficiency score improvement. Often, these non-zero slack values represent a substantial amount of inefficiency. Therefore, in order to fully measure the inefficiency in DMU's performance, it is very important to also consider the inefficiency represented by the non-zero slacks in the context-dependent DEA. This study proposes a slack-based context-dependent DEA which allows a full evaluation of inefficiency in a DMUs performance. By using slack-based efficiency measure, we obtain different frontier levels and more appropriate performance benchmarks for inefficient DMUs.
ISSN:0305-0483
1873-5274
DOI:10.1016/j.omega.2004.06.001