Ranking decision making units with stochastic data by using coefficient of variation (Q710429)

Summary: Data Envelopment Analysis (DEA) is a non-parametric technique which is based on mathematical programming for evaluating the efficiency of a set of Decision Making Units (DMUs). Throughout applications, managers encounter with stochastic data and the necessity of having a method that is able to evaluate efficiency and rank efficient units has been under consideration. In this paper considering the concept of coefficient of variation among efficient DMUs, two ranking methods has been proposed. Within these ranking methods, a DMU will have a higher rank if its coefficient of variation be smaller. These methods are suitable when managers are able to determine weights on coefficient of variations or on inputs and outputs. At the end we applied these methods on a numerical example.