Finding the efficiency score and return to scale characteristic of decision-making units by means of identifying the efficient frontier in data envelopment analysis

Finding the efficiency score and return to scale characteristic of decision-making units by means of identifying the efficient frontier in data envelopment analysis

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Article ID: iaor20071003
Country: Netherlands
Volume: 170
Issue: 2
Start Page Number: 985
End Page Number: 993
Publication Date: Nov 2005
Journal: Applied Mathematics and Computation
Authors: , ,
Abstract:

Data envelopment analysis (DEA) is basically a linear programming based technique used for measuring the relative performance of organizational units, referred to as decision-making units (DMUs), where the presence of multiple inputs and outputs makes comparisons difficult. 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, a method for identifying the efficient frontier is introduced. Then, the efficiency score and returns to scale (RTS) characteristic of DMUs will be produced by means of the equation of efficient frontier.

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