A classification of DEA models when the internal structure of the Decision Making Units is considered

A classification of DEA models when the internal structure of the Decision Making Units is considered

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Article ID: iaor20101499
Volume: 173
Issue: 1
Start Page Number: 207
End Page Number: 235
Publication Date: Jan 2010
Journal: Annals of Operations Research
Authors: , ,
Abstract:

We classify the contributions of DEA literature assessing Decision Making Units (DMUs) whose internal structure is known. Starting from an elementary framework, we define the main research areas as shared flow, multilevel and network models, depending on the assumptions they are subject to. For each model category, the principal mathematical formulations are introduced along with their main variants, extensions and applications. We also discuss the results of aggregating efficiency measures and of considering DMUs as submitted to a central authority that imposes constraints or targets on them. A common feature among the several models is that the efficiency evaluation of the DMU depends on the efficiency values of its subunits thereby increasing the discrimination power of DEA methodology with respect to the black box approach.

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