A modified model for sensitivity analysis of inefficient DMUs in DEA: a case study in hotel industry (Q2627465)

Summary: Different models which have been introduced in data envelopment approach can help managers in decision making process in order to address efficient and inefficient units. But limited number of researches considers sensitivity analysis of enhanced efficiency. One of the important issues for a decision maker is to select an appropriate way to move an inefficient DMU toward efficiency frontier. In this paper a modified model is proposed to analyse sensitivity of inefficient units. In this model, instability radius of each inefficient DMU is determined in terms of variations in inputs and outputs. Also, management coefficients are applied to determine the possibility of variations in inputs and outputs variables. The main advantage of this model in comparison with other model is its flexibility in decision making process. Finally, the proposed model is examined in a case study in hotel industry to confirm the applicability of proposed model.