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Efficiency ranking of decision making units in data envelopment analysis by using TOPSIS-DEA method

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  • Seyed Ali Rakhshan

    (Ferdowsi University of Mashhad
    Quchan University of Advanced Technology)

Abstract

Data envelopment analysis methods classify the decision making units into two groups: efficient and inefficient ones. Therefore, the fully ranking all DMUs is demanded by most of the decision makers. However, data envelopment analysis and multiple criteria decision making units are developed independently and designed for different purposes. However, there are some applications in problem solving such as ranking, where these two methods are combined. Combination of multiple criteria decision making methods with data envelopment analysis is a new idea for elimination of disadvantages when applied independently. In this paper, first the new combined method is proposed named TOPSIS-DEA for ranking efficient units which not only includes the benefits of both data envelopment analysis and multiple criteria decision making methods, but also solves the issues that appear in former methods. Then properties and advantages of the suggested method are discussed and compared with super efficiency method, MAJ method, statistical-based model (CCA), statistical-based model (DR/DEA), cross-efficiency—aggressive, cross-efficiency—benevolent, Liang et al.’s model, through several illustrative examples. Finally, the proposed methods are validated.

Suggested Citation

  • Seyed Ali Rakhshan, 2017. "Efficiency ranking of decision making units in data envelopment analysis by using TOPSIS-DEA method," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(8), pages 906-918, August.
    • Handle: RePEc:pal:jorsoc:v:68:y:2017:i:8:d:10.1057_s41274-017-0237-0
    DOI: 10.1057/s41274-017-0237-0
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