Title: On ranking decision making units using relative similar units in data envelopment analysis

Authors: Seyed Hadi Nasseri; Omid Gholami; Ali Ebrahimnejad

Addresses: Department of Mathematics, Faculty of Mathematical Sciences, Mazandaran University, Babolsar, Iran ' Department of Mathematics, Faculty of Mathematical Sciences, Mazandaran University, Babolsar, Iran ' Department of Mathematics, Qaemshahr Branch, Islamic Azad University, P.O. Box 163, Qaemshahr, Iran

Abstract: Data envelopment analysis (DEA) is a considerable mathematical programming technique for measuring the relative efficiencies of a set of decision making units (DMUs) with multiple inputs and multiple outputs. Conventional DEA assists decision makers in distinguishing between efficient and inefficient DMUs in a homogeneous group. However, it does not give more information about the efficient DMUs. In this paper, a new method is proposed to differentiate the performance of efficient units. In the proposed method a new DEA model is constructed by introducing some virtual units called relative similar units associated with efficient units into the possibility production set. We present two practical examples to demonstrate the applicability of the proposed method and to exhibit the efficacy of the procedures.

Keywords: data envelopment analysis; DEA; relative similar units; DMU ranking; decision making units; DMUs; multiple inputs; multiple outputs; homogeneous groups; performance differentiation; virtual units; production possibility set; PPS.

DOI: 10.1504/IJADS.2014.065216

International Journal of Applied Decision Sciences, 2014 Vol.7 No.4, pp.424 - 436

Received: 19 Dec 2013
Accepted: 02 Feb 2014
Published online: 27 Oct 2014 *

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