Performance analysis and ranking of provincial gas companies in the presence of undesirable products

Data envelopment analisys is a most frequently applied technique in the field of operations research that has attracted considerable attention among researchers. In this paper a performance evaluation model is proposed to analyse the relative efficiency of a set of decision making units when there are both, desirable and undesirable outputs. Managerial disposability assumption is used to handle undesirable outputs. To increase the discrimination power, a ranking procedure based on common weights is proposed. To illustrate the applicability of the proposed model, it has been applied to Iranian provincial gas companies.