Common weights determination in data envelopment analysis
Subject Areas : Data Envelopment AnalysisAlireza Amirteimoori 1 , Sohrab Kordrostami 2
1 - Department of Mathematics, Islamic Azad University, Rasht Branch, Iran
2 - Department of Mathematics, Islamic Azad University, Lahijan Branch, Iran.
Keywords: Data envelopment analysis, Ranking, Common Set of Weights,
Abstract :
In models of data envelopment analysis (DEA), an optimal set of weights is generally assumed to represent the assessed decision making unit (DMU) in the best light in comparison to all the other DMUs, and so there is an optimal set of weights corresponding to each DMU. The present paper, proposes a three stage method to determine one common set of weights for decision making units. Then, we use these weights to rank efficient units. We demonstrate the approach by applying it to rank gas companies.
[1] Andersen P., and Petersen N. C., A procedure for ranking efficient units in data envelopment analysis, Management Science 39, 1261-1264, 1993.
[2] Charnes A., Cooper W. W., and Rhodes E., Measuring the efficiency of decision making units, European Journal of Operational Research 2, 429-444, 1978.
[3] Charnes A., and Cooper W. W., Programming with linear fractional functions, Naval Research Logistics Quarterly 9, 181-186, 1962.
[4] Cook W., and Kress M., Data envelopment model for aggregating performance ranking, Management Science 36(11), 1302-1310, 1990.
[5] Cook W., Roll Y., and Kazakov A., A DEA model for measuring the relative efficiencies of highway maintenace patrols, INFOR 28(2), 113-124, 1990.
[6] Cook W., and Zhu J., Within-group common weights in DEA: an analysis of power plant efficiency, European Journal of Operational Research 178, 207-216, 2007.
[7] Cooper W. W., Ruiz J., and Sirvant I., Choosing weights from alternative optimal solutions of dual multiplier models in DEA, European Journal of Operational Research 30, 91-107, 2007.
[8] Ganley JA., and Cubbin JS., Sector measurement: application of data envelopment analysis, Amsterdam: Nort-Holland, 1992.
[9] Liu F., and Peng H. H., Ranking of units on the DEA frontier with common weights, Computers & Operations Research 35 (5), 1624-1637., 2008.
[10] Roll Y., Cook W., and Golany B., Controlling factor weights in data envelopment analysis, IIE Transactions 24, 1-9, 1991.