Data Envelopment Analysis Based on MPSS Efficient and Inefficient Frontiers

Data envelopment analysis (DEA) is a non-parametric analytical methodology widely used in efficiency measurement of decision making units (DMUs). Conventionally, after identifying the efficient frontier, each DMU is compared to this frontier and classified as efficient or inefficient. This thesis in...

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Main Authors: F. Piran, F Hosseinzadeh Lotfi, M. Rostami-Malkhalifeh
Format: Article
Language:English
Published: Ayandegan Institute of Higher Education, 2013-12-01
Series:International Journal of Research in Industrial Engineering
Subjects:
Online Access:http://www.riejournal.com/article_47966_5ed338206af118a0bf002f6ce49fb3fb.pdf
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author F. Piran
F Hosseinzadeh Lotfi
M. Rostami-Malkhalifeh
author_facet F. Piran
F Hosseinzadeh Lotfi
M. Rostami-Malkhalifeh
author_sort F. Piran
collection DOAJ
description Data envelopment analysis (DEA) is a non-parametric analytical methodology widely used in efficiency measurement of decision making units (DMUs). Conventionally, after identifying the efficient frontier, each DMU is compared to this frontier and classified as efficient or inefficient. This thesis introduces the most productive scale size (MPSS), and anti- most productive scale size (AMPSS), and proposes several models to calculate various distances between DMUs and both frontiers. Specifically, the distances considered in this paper include: (1) both the distance to MPSS and the distance to AMPSS, where the former reveals a unit’s potential opportunity to become a best performer while the latter reveals its potential risk to become a worst performer, and (2) both the closest distance and the farthest distance to frontiers, which may proved different valuable benchmarking information for units. Subsequently, based on these distances, eight efficiency indices are introduced to rank DMUs. Due to different distances adopted in these indices, the efficiency of units can be evaluated from diverse perspectives with different indices employed. In addition, all units can be fully ranked by these indices.
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spelling doaj.art-54589885219e417abcacfa0cdd64458d2022-12-21T21:36:06ZengAyandegan Institute of Higher Education,International Journal of Research in Industrial Engineering2783-13372717-29372013-12-0124152547966Data Envelopment Analysis Based on MPSS Efficient and Inefficient FrontiersF. Piran0F Hosseinzadeh Lotfi1M. Rostami-Malkhalifeh2Department of Mathematics, Islamic Azad University, Zahedan Branch, Zahedan, Iran.Department of Mathematics, Science and Research Branch, Islamic Azad University, Tehran, IranDepartment of Mathematics, Science and Research Branch, Islamic Azad University, Tehran, Iran.Data envelopment analysis (DEA) is a non-parametric analytical methodology widely used in efficiency measurement of decision making units (DMUs). Conventionally, after identifying the efficient frontier, each DMU is compared to this frontier and classified as efficient or inefficient. This thesis introduces the most productive scale size (MPSS), and anti- most productive scale size (AMPSS), and proposes several models to calculate various distances between DMUs and both frontiers. Specifically, the distances considered in this paper include: (1) both the distance to MPSS and the distance to AMPSS, where the former reveals a unit’s potential opportunity to become a best performer while the latter reveals its potential risk to become a worst performer, and (2) both the closest distance and the farthest distance to frontiers, which may proved different valuable benchmarking information for units. Subsequently, based on these distances, eight efficiency indices are introduced to rank DMUs. Due to different distances adopted in these indices, the efficiency of units can be evaluated from diverse perspectives with different indices employed. In addition, all units can be fully ranked by these indices.http://www.riejournal.com/article_47966_5ed338206af118a0bf002f6ce49fb3fb.pdfdata envelopment analysisefficiency indexmost productive scale size
spellingShingle F. Piran
F Hosseinzadeh Lotfi
M. Rostami-Malkhalifeh
Data Envelopment Analysis Based on MPSS Efficient and Inefficient Frontiers
International Journal of Research in Industrial Engineering
data envelopment analysis
efficiency index
most productive scale size
title Data Envelopment Analysis Based on MPSS Efficient and Inefficient Frontiers
title_full Data Envelopment Analysis Based on MPSS Efficient and Inefficient Frontiers
title_fullStr Data Envelopment Analysis Based on MPSS Efficient and Inefficient Frontiers
title_full_unstemmed Data Envelopment Analysis Based on MPSS Efficient and Inefficient Frontiers
title_short Data Envelopment Analysis Based on MPSS Efficient and Inefficient Frontiers
title_sort data envelopment analysis based on mpss efficient and inefficient frontiers
topic data envelopment analysis
efficiency index
most productive scale size
url http://www.riejournal.com/article_47966_5ed338206af118a0bf002f6ce49fb3fb.pdf
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AT mrostamimalkhalifeh dataenvelopmentanalysisbasedonmpssefficientandinefficientfrontiers