Gradual improvement of an inefficient DMU of CCR model, using a finite sequence of the intermediate targets

Subject Areas : International Journal of Industrial Mathematics

hassan Rostamzadeh ¹ , Ali Reza Fakharzadeh Jahromi ² , Marzieh Oroji ³

1 - Department OR, Faculty of Mathematics, Shiraz University of Technology, Shiraz, Iran
2 - Department OR, Faculty of Mathematics, Shiraz University of Technology, Shiraz, Iran
3 - Department OR, Faculty of Mathematics, Shiraz University of Technology, Shiraz, Iran

Received: 2022-10-21 Accepted : 2024-05-18 Published : 2024-09-21

Keywords: : Data envelopment analysis, Efficiency, Gradual Improvement, Intermediate Target, Returns to Scale,

Abstract :

In order to improve the performance of inefficient decision-making units (DMU), it is important to find an efficient target. This target determines the amount of changes in inputs and outputs; by applying these changes, efficiency is achieved. The usual models in DEA always considered the problem of improving inefficient DMU and in this regard, they present a target as an efficient DMU. But in action, for some DMUs achieving that target in one step is difficult and even impossible. For this reason, finding intermediate target is very important. In this way, instead of an inefficient DMU becoming efficient in one step, this work is done in several steps and in this case the improvement is obtained gradually. In this paper, the efficiency of DMUs is evaluated using the CCR model, and then a sequence of intermediate targets is provided for each inefficient DMU. Moving in this direction will reduce the inefficiency of these DMUs.