Abstract
Problem statement: Conventional Data Envelopment Analysis (DEA) helps decision makers to discriminate between efficient and inefficient Decision Making Units (DMUs). However, DEA does not provide more information about the efficient DMUs. Super-efficiency DEA model can be used in ranking the performance of efficient DMUs. Because of the possible infeasibility of radial super-efficiency DEA model, the ranking has been limited to the model under the assumption of Constant Returns to Scale (CRS). Approach: This study proposes a super-efficiency model based on the Enhanced Russell Measure (ERM) of efficiency. This is a non-radial measure and appropriate for ranking the efficient DMUs when inputs and outputs may change non-proportionally. Results: Theoretical results show that the new super-efficiency model is always feasible under the assumption of non-CRS. Also, numerical examples from the literature are provided to test the new super-efficiency approach. Conclusion: This study provides a non-radial measure of super-efficiency based on the ERM model to discriminate among the efficient DMUs resulting different efficiency scores greater than one. Unlike the traditional radial super-efficiency models, the proposed method is always feasible.
Highlights
Data Envelopment Analysis (DEA) is a mathematical programming technique that can be used to distinguish between efficient and inefficient Decision Making Units (DMUs)
We propose a super-efficiency model based upon the Enhanced Russell Measure (ERM) model developed by Pastor et al (1999) for ranking the efficient DMUs
It is demonstrated that the proposed super-efficiency model is always feasible under both Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) assumptions
Summary
Data Envelopment Analysis (DEA) is a mathematical programming technique that can be used to distinguish between efficient and inefficient Decision Making Units (DMUs). Andersen and Petersen (1993) developed the first radial super-efficiency model (AP model hereafter) for ranking the efficient DMUs by excluding the efficient DMU from the reference set of all the other DMUs in such a way that the efficiency scores for efficient DMUs can be greater than one. Many authors proposed various models for ranking the efficient DMUs. For more details see (Zhu, 2001; Tone, 2002; Chen, 2004; Li et al, 2007; Liu and Peng, 2008) among others. The radial super-efficiency models can be infeasible. Due to the infeasibility of the super-efficiency model, ranking has been limited to the radial model under the assumption of Constant Returns to Scale (CRS)
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