Article ID: | iaor201528860 |
Volume: | 32 |
Issue: | 5 |
Start Page Number: | 596 |
End Page Number: | 608 |
Publication Date: | Oct 2015 |
Journal: | Expert Systems |
Authors: | Farzipoor Saen Reza, Izadikhah Mohammad |
Keywords: | case studies, ranking |
Relative efficiency of decision‐making units (DMUs) is assessed by classical data envelopment analysis (DEA) models. DEA is a popular technique for efficiency evaluation. There might be a couple of efficient DMUs. Classical DEA models cannot fully rank efficient DMUs. In this paper, a novel technique for fully ranking all DMUs based on changing reference set using a single virtual inefficient DMU is proposed. To this end, the first concept of virtual DMU is defined as average of all inefficient DMUs. Virtual DMU is a proxy of all inefficient DMUs. This new method proposes a new ranking method that takes into account impact of efficient DMUs on virtual DMU and impact of efficient DMUs on influences of other efficient DMUs. A case study is given to show applicability of the proposed approach.