An Interval Efficiency Measurement in DEA When considering Undesirable Outputs
Data envelopment analysis (DEA) is a popular mathematical tool for analyzing the relative efficiency of homogenous decision-making units (DMUs). However, the existing DEA models cannot tackle the newly confronted applications with imprecise and negative data as well as undesirable outputs simultaneo...
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Wiley
2020-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2020/7161628 |
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| author | Renbian Mo Hongyun Huang Liyang Yang |
| author_facet | Renbian Mo Hongyun Huang Liyang Yang |
| author_sort | Renbian Mo |
| collection | DOAJ |
| description | Data envelopment analysis (DEA) is a popular mathematical tool for analyzing the relative efficiency of homogenous decision-making units (DMUs). However, the existing DEA models cannot tackle the newly confronted applications with imprecise and negative data as well as undesirable outputs simultaneously. Thus, we introduce undesirable outputs into modified slack-based measure (MSBM) model and propose an interval-modified slack-based measure (IMSBM) model, which extends the application of interval DEA (IDEA) in fields that concern with less undesirable outputs. The novelties of the model are that it considers the undesirable outputs while dealing with imprecise and negative data, and it is slack-based. Furthermore, the model with undesirable outputs is proven translation-invariant and unit-invariant. Moreover, a numerical example is provided to illustrate the changes of the lower and upper bounds of the efficiency score after considering the undesirable outputs. The empirical results show that, without considering undesirable outputs, most of the lower bounds of the efficiency scores will be overestimated when the DMUs are weakly efficient and inefficient. The upper bound will also change after considering undesirable outputs when the DMU is inefficient. Finally, an improved degree of preference approach is introduced to rank the DMUs. |
| format | Article |
| id | doaj-art-73a11c75016d4a2295d1cfcf2a01e9e1 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2020-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-73a11c75016d4a2295d1cfcf2a01e9e12025-02-03T01:00:20ZengWileyComplexity1076-27871099-05262020-01-01202010.1155/2020/71616287161628An Interval Efficiency Measurement in DEA When considering Undesirable OutputsRenbian Mo0Hongyun Huang1Liyang Yang2School of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, ChinaCenter for Economic Research, Shandong University, Jinan 250100, ChinaSchool of Statistics, Southwestern University of Finance and Economics, Chengdu 611130, ChinaData envelopment analysis (DEA) is a popular mathematical tool for analyzing the relative efficiency of homogenous decision-making units (DMUs). However, the existing DEA models cannot tackle the newly confronted applications with imprecise and negative data as well as undesirable outputs simultaneously. Thus, we introduce undesirable outputs into modified slack-based measure (MSBM) model and propose an interval-modified slack-based measure (IMSBM) model, which extends the application of interval DEA (IDEA) in fields that concern with less undesirable outputs. The novelties of the model are that it considers the undesirable outputs while dealing with imprecise and negative data, and it is slack-based. Furthermore, the model with undesirable outputs is proven translation-invariant and unit-invariant. Moreover, a numerical example is provided to illustrate the changes of the lower and upper bounds of the efficiency score after considering the undesirable outputs. The empirical results show that, without considering undesirable outputs, most of the lower bounds of the efficiency scores will be overestimated when the DMUs are weakly efficient and inefficient. The upper bound will also change after considering undesirable outputs when the DMU is inefficient. Finally, an improved degree of preference approach is introduced to rank the DMUs.http://dx.doi.org/10.1155/2020/7161628 |
| spellingShingle | Renbian Mo Hongyun Huang Liyang Yang An Interval Efficiency Measurement in DEA When considering Undesirable Outputs Complexity |
| title | An Interval Efficiency Measurement in DEA When considering Undesirable Outputs |
| title_full | An Interval Efficiency Measurement in DEA When considering Undesirable Outputs |
| title_fullStr | An Interval Efficiency Measurement in DEA When considering Undesirable Outputs |
| title_full_unstemmed | An Interval Efficiency Measurement in DEA When considering Undesirable Outputs |
| title_short | An Interval Efficiency Measurement in DEA When considering Undesirable Outputs |
| title_sort | interval efficiency measurement in dea when considering undesirable outputs |
| url | http://dx.doi.org/10.1155/2020/7161628 |
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