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Finding the Most Preferred Decision-Making Unit in Data Envelopment Analysis

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  • Shirin Mohammadi
  • S. Morteza Mirdehghan
  • Gholamreza Jahanshahloo

Abstract

Data envelopment analysis (DEA) evaluates the efficiency of the transformation of a decision-making unit’s (DMU’s) inputs into its outputs. Finding the benchmarks of a DMU is one of the important purposes of DEA. The benchmarks of a DMU in DEA are obtained by solving some linear programming models. Currently, the obtained benchmarks are just found by using the information of the data of inputs and outputs without considering the decision-maker’s preferences. If the preferences of the decision-maker are available, it is very important to obtain the most preferred DMU as a benchmark of the under-assessment DMU. In this regard, we present an algorithm to find the most preferred DMU based on the utility function of decision-maker’s preferences by exploring some properties on that. The proposed method is constructed based on the projection of the gradient of the utility function on the production possibility set’s frontier.

Suggested Citation

  • Shirin Mohammadi & S. Morteza Mirdehghan & Gholamreza Jahanshahloo, 2016. "Finding the Most Preferred Decision-Making Unit in Data Envelopment Analysis," Advances in Operations Research, Hindawi, vol. 2016, pages 1-8, December.
    • Handle: RePEc:hin:jnlaor:7171467
    DOI: 10.1155/2016/7171467
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    Cited by:

    1. Patricija Bajec & Danijela Tuljak-Suban & Eva Zalokar, 2021. "A Distance-Based AHP-DEA Super-Efficiency Approach for Selecting an Electric Bike Sharing System Provider: One Step Closer to Sustainability and a Win–Win Effect for All Target Groups," Sustainability, MDPI, vol. 13(2), pages 1-24, January.
    2. Danijela Tuljak-Suban & Patricija Bajec, 2022. "A Hybrid DEA Approach for the Upgrade of an Existing Bike-Sharing System with Electric Bikes," Energies, MDPI, vol. 15(21), pages 1-23, October.

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