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Uncertain Data Envelopment Analysis

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  • Ehrgott, Matthias
  • Holder, Allen
  • Nohadani, Omid

Abstract

Data Envelopment Analysis (DEA) is a nonparametric, data driven method to conduct relative performance measurements among a set of decision making units (DMUs). Efficiency scores are computed based on assessing input and output data for each DMU by means of linear programming. Traditionally, these data are assumed to be known precisely. We instead consider the situation in which data is uncertain, and in this case, we demonstrate that efficiency scores increase monotonically with uncertainty. This enables inefficient DMUs to leverage uncertainty to counter their assessment of being inefficient.

Suggested Citation

  • Ehrgott, Matthias & Holder, Allen & Nohadani, Omid, 2018. "Uncertain Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 268(1), pages 231-242.
  • Handle: RePEc:eee:ejores:v:268:y:2018:i:1:p:231-242
    DOI: 10.1016/j.ejor.2018.01.005
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    References listed on IDEAS

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    1. Dimitris Bertsimas & Omid Nohadani & Kwong Meng Teo, 2010. "Nonconvex Robust Optimization for Problems with Constraints," INFORMS Journal on Computing, INFORMS, vol. 22(1), pages 44-58, February.
    2. Dimitris Bertsimas & Aurélie Thiele, 2006. "A Robust Optimization Approach to Inventory Theory," Operations Research, INFORMS, vol. 54(1), pages 150-168, February.
    3. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min & Lin, Bruce J.Y., 2013. "A survey of DEA applications," Omega, Elsevier, vol. 41(5), pages 893-902.
    4. Olesen, Ole B. & Petersen, Niels Christian, 2016. "Stochastic Data Envelopment Analysis—A review," European Journal of Operational Research, Elsevier, vol. 251(1), pages 2-21.
    5. Meng Zhang & Jin-chuan Cui, 2016. "The extension and integration of the inverse DEA method," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(9), pages 1212-1220, September.
    6. Emrouznejad, Ali & Parker, Barnett R. & Tavares, Gabriel, 2008. "Evaluation of research in efficiency and productivity: A survey and analysis of the first 30 years of scholarly literature in DEA," Socio-Economic Planning Sciences, Elsevier, vol. 42(3), pages 151-157, September.
    7. Wei, Quanling & Zhang, Jianzhong & Zhang, Xiangsun, 2000. "An inverse DEA model for inputs/outputs estimate," European Journal of Operational Research, Elsevier, vol. 121(1), pages 151-163, February.
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    Citations

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    Cited by:

    1. Huang, Hongyun & Mo, Renbian & Chen, Xingquan, 2021. "New patterns in China's regional green development: An interval Malmquist–Luenberger productivity analysis," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 161-173.
    2. Kiani Mavi, Reza & Kiani Mavi, Neda, 2021. "National eco-innovation analysis with big data: A common-weights model for dynamic DEA," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    3. Toloo, Mehdi & Mensah, Emmanuel Kwasi & Salahi, Maziar, 2022. "Robust optimization and its duality in data envelopment analysis," Omega, Elsevier, vol. 108(C).
    4. Pejman Peykani & Jafar Gheidar-Kheljani & Reza Farzipoor Saen & Emran Mohammadi, 2022. "Generalized robust window data envelopment analysis approach for dynamic performance measurement under uncertain panel data," Operational Research, Springer, vol. 22(5), pages 5529-5567, November.
    5. Hatami-Marbini, Adel & Arabmaldar, Aliasghar, 2021. "Robustness of Farrell cost efficiency measurement under data perturbations: Evidence from a US manufacturing application," European Journal of Operational Research, Elsevier, vol. 295(2), pages 604-620.
    6. Luciano Ferreira Cruz & Flavia Bernardo Pinto & Lucas Camilotti & Angelo Marcio Oliveira Santanna & Roberto Zanetti Freire & Leandro Santos Coelho, 2022. "Improved multiobjective differential evolution with spherical pruning algorithm for optimizing 3D printing technology parametrization process," Annals of Operations Research, Springer, vol. 319(2), pages 1565-1587, December.
    7. Adel Hatami-Marbini & Aliasghar Arabmaldar & John Otu Asu, 2022. "Robust productivity growth and efficiency measurement with undesirable outputs: evidence from the oil industry," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1213-1254, December.

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