Setting performance targets for new decision making units in Data Envelopment Analysis

This paper examines the problem of setting targets for a new decision making unit so that the efficiency of that DMU relative to existing units will be at or better than some preset floor performance level. While this problem can arise both on the input and output side, the development here pertains only to the case where outputs are given, while target inputs are to be determined. The situation is examined where limits may be imposed on the potential target inputs. The possibility of nondiscretionary factors is also considered.