Sensitivity Analysis in Two-Stage DEA

Subject Areas : Data Envelopment Analysis

Atena Forghani ¹ , Esmaeil Najafi ²

1 - Department of Industrial Engineering, Tehran Science and Research Branch, Islamic Azad University, Tehran, Iran
2 - Department of Industrial Engineering, Tehran Science and Research Branch, Islamic Azad University, Tehran, Iran

Received: 2015-08-14 Accepted : 2015-10-25 Published : 2015-12-01

Keywords: Sensitivity analysis, Two-stage DEA, Weighted sum model, Combined DEA model,

Abstract :

Data envelopment analysis (DEA) is a method for measuring the efficiency of peer decision making units (DMUs) which uses a set of inputs to produce a set of outputs. In some cases, DMUs have a two-stage structure, in which the first stage utilizes inputs to produce outputs used as the inputs of the second stage to produce final outputs. One important issue in two-stage DEA is the sensitivity of the results of an analysis to perturbations in the data. The current paper looks into combined model for two-stage DEA and applies the sensitivity analysis to DMUs on the entire frontier. In fact, necessary and sufficient conditions for preserving a DMU's efficiency classiffication are developed when various data changes are applied to all DMUs.

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