A lexicographic radial projection onto the efficient frontier in Data Envelopment Analysis

Research output: Contribution to journalArticleScientificpeer-review

Researchers

Research units

  • Kharazmi University
  • University of Birjand

Abstract

A well-known problem of using radial projection in Data Envelopment Analysis (DEA) is that the solution may be only weakly efficient-not necessarily efficient. Our aim is to overcome this drawback by developing a lexicographic approach to projecting radially any unit onto the efficient frontier-not only onto the weakly efficient frontier. The approach is based on the idea to apply radial projection by stepwise dropping component(s) from the radial projection vector until the efficient frontier is reached. The approach has two main differences compared to the traditional approach: (1) the target unit on the efficient frontier is found in the spirit of radial projection and (2) the (in)efficiency score is not necessarily the same for all controllable variables. A numerical illustration and an empirical example are used to demonstrate the approach.

Details

Original languageEnglish
Pages (from-to)1005-1012
Number of pages8
JournalEuropean Journal of Operational Research
Volume265
Issue number3
Early online date2017
Publication statusPublished - 2018
MoE publication typeA1 Journal article-refereed

    Research areas

  • Data Envelopment Analysis, Efficiency score, Efficient solution, Radial projection, Weakly efficient solution

ID: 15340806