Open Access Open Access  Restricted Access Subscription or Fee Access

Obtaining a Unique Solution for Cross Efficiency in order to rank DMUs in Data Envelopment Analysis

G. R. Jahanshahloo, R. Fallahnejad

Abstract


In Data Envelopment Analysis (DEA), weights are generally chosen in a manner that assigns a best set of weights to each Decision Making Unit (DMU). Although total freedom of weights is one of the advantages of DEA, it gives rise to some practical limitations such as: the high number of efficient DMUs and contradiction to prior observations or available information. For solving these problems, various ranking and weight restriction methods have been introduced before. Cross efficiency which is used for evaluation and ranking is a method that uses the idea of peer evaluation instead of a self-evaluation and as a result reduces the effects of total freedom of weights in this way. But since DEA weights are generally not unique, cross efficiency which uses optimal weights corresponding to evaluation of DMUs may not be unique either. This defect decreases the usefulness of the cross-evaluation method. In this paper, we present a method for obtaining a unique solution for cross efficiency and then try to rank all DMUs including efficient (extreme or non-extreme) and inefficient units. Our method is based upon maximizing the efficiency of each DMU over the set of alternative optimal solution of other DMUs when they were evaluated by CCR model. Then, we try to obtain ranking scores for under evaluation DMUs by using SAW and TOPSIS methods.

Keywords


Data Envelopment Analysis; Cross Efficiency; TOPSIS; SAW, Entropy.

Full Text:

PDF


Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information.