Efficiency analysis under imprecise inputs and outputs reduction
Data envelopment analysis (DEA) is a powerful tool for measuring the relative efficiencies of a set of decision making units (DMU) that consume multiple inputs to produce multiple outputs. DEA can also be used in activity planning and economic regulation of decentralized units under a common management. One important management challenge in such systems (e.g. schools, hospitals, utilities) is how to implement reductions in common resources (budget, staff, raw material) as well as centrally allocated outputs (students, patients, service areas) while maintaining a high operational efficiency of the system. We extend earlier work on DEA activity planning under resource and output restrictions for the case in which the centralized planner is facing an imprecise shrinkage factor, here expressed as interval data. The implementation of the proposed method is applied for a numeric example.
Citation : Gholami, K. et al. (2012) Efficiency analysis under imprecise inputs and outputs reduction. Uncertainty Modeling in Knowledge Engineering and Decision Making: pp. 1082-1086
Research Institute : Centre for Enterprise and Innovation (CEI)
Peer Reviewed : Yes