4.5 Article

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

Journal

JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY
Volume 73, Issue 9, Pages 1996-2008

Publisher

TAYLOR & FRANCIS LTD
DOI: 10.1080/01605682.2021.1967211

Keywords

Data envelopment analysis; ranking; multi-directional efficiency measure; multi-directional super-efficiency measure; Monte Carlo method

Funding

  1. Natural Sciences and Engineering Research Council of Canada (NSERC)
  2. Spanish Ministry of Science, Innovation and Universities

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This paper introduces a new DEA ranking method based on multi-directional efficiency measure (MEM) that considers all improvement directions without relying on specific ones for ranking. The method can rank both efficient and inefficient units without prior information requirements. The proposed approach is compared with three other state-of-the-art rankings using a real-life dataset.
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.

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