Estimating preferred target input-output levels using data envelopment analysis

This paper develops models which can be used to estimate alternative input-output target levels to render relatively inefficient organisational units efficient. The models can incorporate preferences over potential improvements to individual input output levels so that the resultant target levels reflect the user’s preferences over alternative paths to efficiency. The paper illustrates the practical usefulness of the models developed and highlights the alternative measures of relative efficiency implicit in the models developed.