On the relative efficiency in general network structures

Subject Areas : International Journal of Industrial Mathematics

F. Boloori ¹ , J. Pourmahmoud Gazijahani ²

1 - Azarbayjan Shahid Madani University, Department of Science, Tabriz, Iran.
2 - Azarbayjan Shahid Madani University, Department of Science, Tabriz, Iran.

Received: 2014-03-15 Accepted : 2014-03-15 Published : 2014-04-01

Keywords: Network DEA, Absolute effi&#x0E, ciency, Relative effi&#x0E, ciency, Divisional effi&#x0E, ciency, Overall e&#x0E, fficiency,

Abstract :

Data Envelopment Analysis (DEA) is an eciency measurement tool for evaluation of similar Decision Making Units (DMUs). In DEA, weights are assigned to inputs and outputs and the absolute eciency score is obtained by the ratio of weighted sum of outputs to weighted sum of inputs. In traditional DEA models, this measure is also equivalent with relative eciency score which evaluates DMUs in compare with the most ecient DMU. Recently network DEA models are appeared in the literature, which try to assess DMUs regarding their internal production divisions and intermediate products. In this paper we compare absolute and relative eciency scores in network framework. Since in network DEA models, an ecient DMU does not exist necessarily, the relative eciency model helps us to have at least one ecient DMU in our assessments.