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Output-input ratio analysis and data envelopment analysis inefficient frontier
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H. Azizi   |
| Department of Applied Mathematics, Parsabad Moghan Branch, Islamic Azad University, Parsabad Moghan, Iran. |
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Abstract: (4026 Views) |
| Data Envelopment Analysis (DEA) is a mathematical programming approach to evaluate the relative efficiency of decision-making units (DMUs) which use multiple inputs to produce multiple outputs. Identification of the DMUs forming the frontier before using DEA is of great importance to have an effective calculation. This article introduces the worst efficiency analysis approach in which an inefficient production frontier is used to determine the worst relative efficiency score that can be assigned to any DMU. Furthermore, mathematical properties determining the intrinsic relationships between the inefficient frontier DMUs and the output-input ratios are discussed. It was observed that a high ranked performance in the ratio analysis indicates a DEA frontier. This in turn allows the identification of membership of frontier DMUs without solving a DEA program. This finding is helpful in simplifying the DEA solution. |
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| Keywords: Data envelopment analysis, efficiency, inefficient frontier, ratio analysis, returns to scale |
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Full-Text [PDF 471 kb]
(1872 Downloads)
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Type of Study: Research |
Subject:
General
Received: 2017/01/9 | Accepted: 2017/04/22 | Published: 2017/07/15
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