A generalized model for weight restrictions in data envelopment analysis

A generalized model for weight restrictions in data envelopment analysis

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Article ID: iaor20062349
Country: United Kingdom
Volume: 56
Issue: 4
Start Page Number: 390
End Page Number: 396
Publication Date: Apr 2005
Journal: Journal of the Operational Research Society
Authors: ,
Abstract:

Data envelopment analysis (DEA) is designed to maximize the efficiency of a given decision-making unit (DMU) relative to all other DMUs by the choice of a set of input and output weights. One strength of the original models is the absence of any need of a priori information about the process of transforming inputs into outputs. However, in the practical application of DEA models, this strength has become a weakness. Incorporation of process knowledge is more a norm than an exception in practice, and typically involves placing constraints on the input and/or output weights. New DEA formulations have evolved to address this issue. However, existing formulations for weight restrictions may underestimate relative efficiency or even render a problem infeasible. A new model formulation is introduced to address this issue. This formulation represents a significant improvement over existing DEA models by providing a generalized, comprehensive treatment for weight restrictions.

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