Journal of Applied Mathematics

Developing Common Set of Weights with Considering Nondiscretionary Inputs and Using Ideal Point Method

Reza Kiani Mavi, Sajad Kazemi, and Jay M. Jahangiri

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Abstract

Data envelopment analysis (DEA) is used to evaluate the performance of decision making units (DMUs) with multiple inputs and outputs in a homogeneous group. In this way, the acquired relative efficiency score for each decision making unit lies between zero and one where a number of them may have an equal efficiency score of one. DEA successfully divides them into two categories of efficient DMUs and inefficient DMUs. A ranking for inefficient DMUs is given but DEA does not provide further information about the efficient DMUs. One of the popular methods for evaluating and ranking DMUs is the common set of weights (CSW) method. We generate a CSW model with considering nondiscretionary inputs that are beyond the control of DMUs and using ideal point method. The main idea of this approach is to minimize the distance between the evaluated decision making unit and the ideal decision making unit (ideal point). Using an empirical example we put our proposed model to test by applying it to the data of some 20 bank branches and rank their efficient units.

Article information

Source
J. Appl. Math. Volume 2013 (2013), Article ID 906743, 9 pages.

Dates
First available in Project Euclid: 14 March 2014

Permanent link to this document
http://projecteuclid.org/euclid.jam/1394808304

Digital Object Identifier
doi:10.1155/2013/906743

Mathematical Reviews number (MathSciNet)
MR3145012

Citation

Kiani Mavi, Reza; Kazemi, Sajad; M. Jahangiri, Jay. Developing Common Set of Weights with Considering Nondiscretionary Inputs and Using Ideal Point Method. J. Appl. Math. 2013 (2013), Article ID 906743, 9 pages. doi:10.1155/2013/906743. http://projecteuclid.org/euclid.jam/1394808304.


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