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Ranking decision making units based on the multi-directional efficiency measure

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  • Narges Soltani
  • Zijiang Yang
  • Sebastián Lozano

Abstract

This paper presents a new DEA ranking approach based on the multi-directional efficiency measure (MEM). The advantage of an MEM-based ranking is that it considers all the possible improvement directions for each decision-making unit (DMU) and does not rely on just one specific improvement direction for ranking. To rank efficient DMUs, all of which have an MEM efficiency score of unity, a multi-directional super-efficiency measure (MSEM) is considered. This allows the ranking of all efficient and inefficient units. The proposed ranking method is always feasible and does not need any prior information. The proposed method is applied to a real-life dataset, and the results are compared with those of three other state-of-the-art ranking methods.

Suggested Citation

  • Narges Soltani & Zijiang Yang & Sebastián Lozano, 2022. "Ranking decision making units based on the multi-directional efficiency measure," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 73(9), pages 1996-2008, October.
    • Handle: RePEc:taf:tjorxx:v:73:y:2022:i:9:p:1996-2008
    DOI: 10.1080/01605682.2021.1967211
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