A Procedure for Ranking Efficient Units in Data Envelopment Analysis

Published Online:https://doi.org/10.1287/mnsc.39.10.1261

Data Envelopment Analysis (DEA) evaluates the relative efficiency of decision-making units (DMUs) but does not allow for a ranking of the efficient units themselves. A modified version of DEA based upon comparison of efficient DMUs relative to a reference technology spanned by all other units is developed. The procedure provides a framework for ranking efficient units and facilitates comparison with rankings based on parametric methods.

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