Robust efficiency in data envelopment analysis with VRS technology

Authors

  • Farhad Moradi Department of Applied Mathematics, Sanandaj Branch, Islamic Azad University, Kordestan, Iran.
  • Saeid Shahghobadi Department of Applied Mathematics, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran.
Abstract:

One of the fundamental problems in the classic DEA is lack of ability to distinguish unit's performance scores that is considered as a disadvantage. Recently, Parkan et al. [9] tried to address this problem.   They proposed to assess each unit both optimistic and pessimistic views are taken into account. In contrast to traditional evaluation, one index is considered for each unit based on the lowest measured performance that is called robust efficiency. In this way, a new technology was made on the assumption of constant returns to scale. In this paper, the production technology with variable returns to scale assumptions made and the corresponding models are formulated as linear programming. Finally, it is shown that, the models based on the robust efficiency has more discriminatory power of the classic DEA.

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Journal title

volume 4  issue شماره 13

pages  91- 100

publication date 2018-03-01

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