Output–input ratio analysis and the data envelopment analysis frontier

Output–input ratio analysis and the data envelopment analysis frontier

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Article ID: iaor20032113
Country: Netherlands
Volume: 142
Issue: 3
Start Page Number: 476
End Page Number: 479
Publication Date: Nov 2002
Journal: European Journal of Operational Research
Authors: ,
Abstract:

Data envelopment analysis (DEA) is a mathematical programming technique for identifying efficient frontiers for peer decision making units (DMUs). The ability of identifying frontier DMUs prior to the DEA calculation is of extreme importance to an effective and efficient DEA computation. In this paper, we present mathematical properties which characterize the inherent relationships between DEA frontier DMUs and output–input ratios. It is shown that top-ranked performance by ratio analysis is a DEA frontier point. This in turn allows identification of membership of frontier DMUs without solving a DEA program. Such finding is useful in streamlining the solution of DEA.

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