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A Data Envelopment Analysis (Dea) Evaluation Method Based On Sample Decision Making Units

Author

Listed:
  • QUANLING WEI

    (Institute of Operations Research and Mathematical Economics, Renmin University of China, Haidian District, Beijing 100872, China)

  • HONG YAN

    (Department of Logistics and Maritime Studies, The Hong Kong Polytechnic University, Kowloon, Hong Kong, China)

Abstract

Most of evaluation methods on large number of candidates are based a single criterion. To bring the multiple attribute evaluation method Data Envelopment Analysis (DEA) into evaluating large number of elements, it needs to set up the performance standards and an evaluation procedure by the DEA model. In this paper, we first determine a set of "standard" candidates, called in decision making units (DMUs) in the DEA terminology. This standard set is called "training set". We then establish the evaluation procedure based on this "training set" for measuring a large number of DMUs. We first investigate the efficiency evaluation of a new DMU along with the original definition based on the sum formed production possibility set which is formed by thenDMUs in the training set and the new DMU. We then identify the intersection form of the production possibility set formed only by thenDMUs from the training set. And show that the new DMU evaluation is simply to check if the DMU satisfies a set of linear inequalities. The intersection formed production possibility set formed by thenDMUs from the training set is fixed for evaluating any new DMU. Therefore, it provides an efficient and effective method for dealing with a large amount of data. The method can be regarded as a complementary approach for data mining.

Suggested Citation

  • Quanling Wei & Hong Yan, 2010. "A Data Envelopment Analysis (Dea) Evaluation Method Based On Sample Decision Making Units," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 9(04), pages 601-624.
    • Handle: RePEc:wsi:ijitdm:v:09:y:2010:i:04:n:s021962201000397x
    DOI: 10.1142/S021962201000397X
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    Cited by:

    1. Adriana Lucía Contreras León & Gloria Isabel Rodriguez Lozano, 2016. "Medición de la eficiencia relativa de fincas ganaderas con servicio de asistencia técnica," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, vol. 25(1), pages 117-128, December.
    2. See, Kok Fong & Ma, Zhanxin & Tian, Yuzhen, 2023. "Examining the efficiency of regional university technology transfer in China: A mixed-integer generalized data envelopment analysis framework," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    3. Tien-Hsiang Chang & Ling-Jing Kao & Tsung-Yin Ou & Hsin-Pin Fu, 2018. "A Hybrid Method to Measure the Operational Performance of Fast Food Chain Stores," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1269-1298, July.

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