Production trade-offs and weight restrictions in ratio based data envelopment analysis
Subject Areas : تحقیق در عملیات
1 - Department of Mathematics, Shiraz branch, Islamic Azad University, Shiraz, Iran
Keywords: Data envelopment analysis, Ratio analysis, DEA-R, weight restrictions, trade-offs,
Abstract :
In this paper, we will examine the issue of applying superior value information in data envelopment analysis (DEA) in the presence of ratio data. We show that applying weight restrictions in the ratio analysis model is equivalent to considering production trade-offs between the ratios of input to output components in the ratio based data envelopment analysis (DEA-R) model. In the following, we make a comparison between the efficiency score and the corresponding ranking with the decision-making units (DMUs) resulting from these two models with different selection of weight restrictions based on a practical example. For this purpose, we evaluate the performance and ranking of academic units, taking into account the weight restrictions based on the opinion of the senior managers of the university. We show that by choosing different weight restrictions, unit efficiency values change, and by applying weight restrictions, the efficiency scores of university units do not improve. At the end, we bring the results of the research.
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