Measuring the efficiency of interdependent decision making sub-units in data envelopment analysis

Measuring the efficiency of interdependent decision making sub-units in data envelopment analysis

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Article ID: iaor20081509
Country: Netherlands
Volume: 173
Issue: 2
Start Page Number: 847
End Page Number: 855
Publication Date: Feb 2006
Journal: Applied Mathematics and Computation
Authors: ,
Abstract:

This paper discusses the problem of evaluating the efficiency of a set of interdependent Decision Making Sub-units (DMSUs) that make up a large Decision Making Unit (DMU). The DMSUs are interdependent in the sense that some output produced by each DMSU is used as input by other one. The current paper presents a modified version of the DEA model to estimate the relative efficiency of DMSUs. The proposed method preserves the linearity of the CCR (Charnes, Cooper and Rhodes) model.

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