On the identification of the global reference set in data envelopment analysis

DOI10.1016/J.EJOR.2015.03.029zbMATH Open1346.90594arXiv1503.09115OpenAlexW2026377399MaRDI QIDQ319677FDOQ319677

Authors: M. Mehdiloozad, S. M. Mirdehghan, Biresh K. Sahoo, I. Roshdi 

Publication date: 6 October 2016

Published in: European Journal of Operational Research (Search for Journal in Brave)

Abstract: It is well established that multiple reference sets may occur for a decision making unit (DMU) in the non-radial DEA (data envelopment analysis) setting. As our first contribution, we differentiate between three types of reference set. First, we introduce the notion of unary reference set (URS) corresponding to a given projection of an evaluated DMU. The URS includes efficient DMUs that are active in a specific convex combination producing the projection. Because of the occurrence of multiple URSs, we introduce the notion of maximal reference set (MRS) and define it as the union of all the URSs associated with the given projection. Since multiple projections may occur in non-radial DEA models, we further define the union of the MRSs associated with all the projections as unique global reference set (GRS) of the evaluated DMU. As the second contribution, we propose and substantiate a general linear programming (LP) based approach to identify the GRS. Since our approach makes the identification through the execution of a single primal-based LP model, it is computationally more efficient than the existing methods for its easy implementation in practical applications. Our last contribution is to measure returns to scale using a non-radial DEA model. This method effectively deals with the occurrence of multiple supporting hyperplanes arising either from multiplicity of projections or from non-full dimensionality of minimum face. Finally, an empirical analysis is conducted based on a real-life data set to demonstrate the ready applicability of our approach.

Full work available at URL: https://arxiv.org/abs/1503.09115

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zbMATH Keywords

linear programmingreturns to scaledata envelopment analysisglobal reference setminimum face

Mathematics Subject Classification ID

Management decision making, including multiple objectives (90B50) Special problems of linear programming (transportation, multi-index, data envelopment analysis, etc.) (90C08)

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Cited In (11)

• FINDING THE REFERENCE SET OF A DECISION MAKING UNIT
• An extended data envelopment analysis for the decision-making
• Comparison of different methods for estimation of returns to scale in nonradial data envelopment analysis models
• A data envelopment analysis-based clustering approach under dynamic situations
• A unified approach to non-radial graph models in data envelopment analysis: common features, geometry, and duality
• Finding a maximal element of a non-negative convex set through its characteristic cone: an application to finding a strictly complementary solution
• Estimating the hyperbolic distance function: a directional distance function approach
• A well-defined composite indicator: an application to corporate social responsibility
• Finding the most preferred decision-making unit in data envelopment analysis
• Identifying the global reference set in DEA: an application to the determination of returns to scale
• The strict complementarity in linear fractional optimization

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