Optimising proportional weights as a secondary goal in DEA cross-efficiency evaluation

Abstract

Cross-efficiency evaluation is an alternative approach to rank of decision making units (DMUs) in data envelopment analysis (DEA). This approach introduces a cross-efficiency matrix, in which the units are self and peer evaluated. However, the cross-efficiency scores may not be unique due to the presence of alternate optima. To overcome this shortcoming, the secondary goals have been introduced in the cross-efficiency evaluation. In this paper, we propose the proportional weight assignment technique that makes a selection of weight proportional to its corresponding input or output as a secondary goal in DEA cross-efficiency evaluation. A numerical example is solved by use of the proposed method and its results are compared with other approaches. The results show that our proposed method can be effective and practical.