Article ID: | iaor20104128 |
Volume: | 17 |
Issue: | 3 |
Start Page Number: | 365 |
End Page Number: | 380 |
Publication Date: | May 2010 |
Journal: | International Transactions in Operational Research |
Authors: | Singh Sanjeet |
In this paper, we study multiparametric sensitivity analysis of the additive model in data envelopment analysis using the concept of maximum volume in the tolerance region. We construct critical regions for simultaneous and independent perturbations in all inputs/outputs of an efficient decision making unit. Necessary and sufficient conditions are derived to classify the perturbation parameters as ‘focal’ and ‘nonfocal.’ Nonfocal parameters can have unlimited variations because of their low sensitivity in practice and these parameters can be deleted from the final analysis. For focal parameters a maximum volume region is characterized. Theoretical results are illustrated with the help of a numerical example.