Finding common weights in DEA using a compromise solution approach

Subject Areas : International Journal of Data Envelopment Analysis

Masomeh Abbasi ¹ , Abbas Ghomashi ² , Saeed Shahghobadi ³

1 - Department of mathematics, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran.
2 - Department of mathematics, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran.
3 - Department of Mathematics, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran.

Received: 2022-01-17 Accepted : 2022-04-14 Published : 2022-05-01

Keywords: Ranking, Data Envelopment Analysis, Common weights,

Abstract :

The weights generated by the common weights approach provide a common criterion for ranking the decision-making units (DMUs) in data envelopment analysis (DEA). Existing common weights models in DEA are either very complicated or unable to produce a full ranking for DMUs. This paper proposes a new compromise solution model to seek a common set of weights for full ranking for DMUs. The maximum inefficiency scores calculated from the standard DEA model are regarded as the anti-ideal solution for the DMUs to avoid. A common set of weights that produces the vector of inefficiency scores for the DMUs furthest to the anti-ideal solution is sought. The discrimination power of the new model is tested using two numerical examples and its potential application for fully ranking DMUs is illustrated.