A modified super-efficiency DEA model for infeasibility

The super-efficiency data envelopment analysis (DEA) model is obtained when a decision making unit (DMU) under evaluation is excluded from the reference set. This model provides for a measure of stability of the "efficient" status for frontier DMUs. Under the assumption of variable returns...

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Bibliographic Details
Published in:The Journal of the Operational Research Society 2009-02, Vol.60 (2), p.276-281
Main Authors: Cook, W D, Liang, L, Zha, Y, Zhu, J
Format: Article
Language:English
Subjects:
Applied sciences
Automobile manufacturers
Business and Management
Data envelopment analysis
data envelopment analysis (DEA)
data extremities
Datasets
Decision making units
Decision theory. Utility theory
Efficiency
Efficiency decisions
Efficiency metrics
Exact sciences and technology
Firm modelling
infeasibility
Management
Mathematics
Modeling
Nonparametric inference
Operational research and scientific management
Operational research. Management science
Operations research
Operations Research/Decision Theory
Optimal solutions
Probability and statistics
Productivity
Sciences and techniques of general use
Statistics
Studies
super-efficiency
Theoretical Paper
Theoretical Papers
Toy models
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Summary:The super-efficiency data envelopment analysis (DEA) model is obtained when a decision making unit (DMU) under evaluation is excluded from the reference set. This model provides for a measure of stability of the "efficient" status for frontier DMUs. Under the assumption of variable returns to scale (VRS), the super efficiency model can be infeasible for some efficient DMUs, specifically those at the extremities of the frontier. The current study develops an approach to overcome infeasibility issues. It is shown that when the model is feasible, our approach yields super-efficiency scores that are equivalent to those arising from the original model. For efficient DMUs that are infeasible under the super-efficiency model, our approach yields optimal solutions and scores that characterize the extent of super-efficiency in both inputs and outputs. The newly developed approach is illustrated with two real world data sets.
ISSN:0160-5682
1476-9360
DOI:10.1057/palgrave.jors.2602544