Finding strong defining hyperplanes of Production Possibility Set

Abstract

Production Possibility Set (PPS) is defined as the set of all inputs and outputs of a system in which inputs can produce outputs. Data Envelopment Analysis models implicitly use PPS to evaluate relative efficiency of Decision Making Units (DMUs). Although DEA models can determine the efficiency of a DMU, they cannot present efficient frontiers of PPS. In this paper, we propose a method for finding all Strong Defining Hyperplanes of PPS (SDHP). They are equations that form efficient surfaces. These equations are useful in Sensitivity and Stability Analysis, the status of Returns to Scale of a DMU, incorporating performance information into the efficient frontier analysis and so on.