Relationship between MOLP and DEA based on output-orientated CCR dual model

Abstract

Data envelopment analysis ( DEA) and multiple objective linear programming ( MOLP) are tools that can be used in management control and planning. While these two types of model are similar in structure, DEA is a performance measurement tool that was initially without consideration of the decision maker ( DM)’s preference structure and is directed to assessing past performances as part of management control function and MOLP to planning future performance targets. This paper will establish an equivalence model between DEA and MOLP and show how a DEA problem can be solved interactively by transforming it into MOLP formulation. We will use Zionts–Wallenius (Z–W) method to reflecting the DM’s preferences in the process of assessing efficiency. A case study will conducted to illustrate how DEA-oriented efficiency analysis can be conducted using the MOLP method.