Merging DMUs Based on of the idea Inverse DEA

Subject Areas : Data Envelopment Analysis

Elaheh Zeinodin ¹ , Saeid Ghobadi ²

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Received: 2018-01-23 Accepted : 2018-08-26 Published : 2019-12-01

Keywords: Data Envelopment Analysis (DEA), Efficiency, Inverse DEA, Multiple-Objective Programming (MOP), Merging decision making units (DMUs),

Abstract :

In this paper, we propose a novel method using multiple-objective programming problems to answer the following question: if among a group of decision making units (DMUs), a subset of DMUs are required to merge and form a new DMU with specific input/output levels and a predefined efficiency target, how much should be the outputs/inputs of the merged DMU? This question answered according to the concept of inverse DEA. Sufficient conditions are established for input/output-estimation of the merged DMU using multiple-objective programming problems. A numerical example with real data is presented to illustrate the goals of this paper.