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Efficiency evaluation with data uncertainty

Author

Listed:
  • Jie Wu

    (University of Science and Technology of China)

  • Lulu Shen

    (University of Science and Technology of China)

  • Ganggang Zhang

    (University of Science and Technology of China)

  • Zhixiang Zhou

    (Hefei University of Technology)

  • Qingyuan Zhu

    (Nanjing University of Aeronautics and Astronautics)

Abstract

As one of the most popular techniques for performance evaluation, Data Envelopment Analysis (DEA) has been widely applied in many areas. However, the self-evaluation used in DEA leaves it open to much criticism. Moreover, most researchers have ignored the fact that reality abounds with uncertainty and have assumed that the data used for evaluation is deterministic and accurate. Both assumptions make it difficult to evaluate the efficiency of real-world production processes correctly and reasonably. In this paper, we propose a series of robust cross-efficiency (RCE) models based on robust optimization theory and cross-efficiency to deal with these problems. First of all, the proposed RCE models allow the conservatism level to be adjusted easily to suit the attitude of the decision-maker towards uncertainty. In addition, the RCE models have better discrimination power than the existing robust CCR models. We present two applications to demonstrate the effectiveness and stability of our models.

Suggested Citation

  • Jie Wu & Lulu Shen & Ganggang Zhang & Zhixiang Zhou & Qingyuan Zhu, 2024. "Efficiency evaluation with data uncertainty," Annals of Operations Research, Springer, vol. 339(3), pages 1379-1403, August.
    • Handle: RePEc:spr:annopr:v:339:y:2024:i:3:d:10.1007_s10479-022-04636-0
    DOI: 10.1007/s10479-022-04636-0
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    References listed on IDEAS

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