Article ID: | iaor20084502 |
Country: | Netherlands |
Volume: | 178 |
Issue: | 1 |
Start Page Number: | 207 |
End Page Number: | 216 |
Publication Date: | Apr 2007 |
Journal: | European Journal of Operational Research |
Authors: | Cook Wade D., Zhu Joe |
Keywords: | statistics: data envelopment analysis, performance |
In many real world applications where DEA is applied, DMUs can often be put into groups, such as those which may be under a single management team. This often means that the multipliers used within a group should be common across that group's members. The case example examined in this regard is one involving a set of power plants, with each containing a set of power units under a common plant management. We develop a goal-programming model for this setting that seeks to derive such a common-multiplier set. The important feature of this multiplier set is that it minimizes the maximum discrepancy among the within-group scores from their ideal levels.