##
**A multi-stage methodology for the solution of orientated DEA models.**
*(English)*
Zbl 0963.91032

Summary: The majority of DEA studies use a two-stage Linear Programming (LP) process to solve orientated DEA models. There are two significant problems associated with the second stage of this process. The first is that the sum of slacks is maximized rather than minimized and hence will identify not the nearest efficient point but the furthest efficient point. The second problem is that it is not invariant to units of measurement. In this paper we propose a multi-stage DEA methodology which involves a sequence of radial LPs. We observe that this new approach identify more representative efficient points and that it is also invariant to units of measurement. The methodology is illustrated using a simple example.

### MSC:

91B06 | Decision theory |

90B50 | Management decision making, including multiple objectives |

90C05 | Linear programming |

### Software:

DEAP
PDF
BibTeX
XML
Cite

\textit{T. Coelli}, Oper. Res. Lett. 23, No. 3--5, 143--149 (1998; Zbl 0963.91032)

Full Text:
DOI

### References:

[1] | A.I. Ali, L.M. Seiford, The mathematical programming approach to efficiency analysis, in: H.O. Fried, C.A.K. Lovell, S.S. Schmidt (Eds.), The Measurement of Productive Efficiency, Oxford University Press, New York, 1993, pp. 120-159. |

[2] | Banker, R.D.; Charnes, A.; Cooper, W.W., Some models for estimating technical and scale inefficiencies in data envelopment analysis, Management sci., 30, 1078-1092, (1984) · Zbl 0552.90055 |

[3] | Charnes, A.; Cooper, W.W.; Golany, B.; Seiford, L.; Stutz, J., Foundations of data envelopment analysis for pareto – koopmans efficient empirical production functions, J. econom., 30, 91-107, (1985) · Zbl 0582.90007 |

[4] | Charnes, A.; Cooper, W.W.; Rhodes, E., Measuring the efficiency of decision making units, European J. oper. res., 2, 429-444, (1978) · Zbl 0416.90080 |

[5] | T.J. Coelli, A Guide to DEAP Version 2.1: a data envelopment analysis (Computer) program, CEPA Working Paper 96/8, Department of Econometrics, University of New England, Armidale, 1996. |

[6] | Ferrier, G.D.; Lovell, C.A.K., Measuring cost efficiency in banking: econometric and linear programming evidence, J. econom., 46, 229-245, (1990) |

[7] | Lovell, C.A.K.; Pastor, J.T., Units invariant and translation invariant DEA models, Oper. res. lett., 18, 147-151, (1995) · Zbl 0855.90004 |

This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.