Abstract

This paper studies the inverse data envelopment analysis using the nonradial enhanced Russell model. Necessary and sufficient conditions for inputs/outputs determination are introduced based on Pareto solutions of multiple-objective linear programming. In addition, an approach is investigated to identify extra input/lack output in each of input/output components (maximum/minimum reduction/increase amounts in each a of input/output components). In addition, the following question is addressed: if among a group of DMUs, it is required to increase inputs and outputs to a particular unit and assume that the DMU maintains its current efficiency level with respect to other DMUs, how much should the inputs and outputs of the DMU increase? This question is discussed as inverse data envelopment analysis problems, and a technique is suggested to answer this question. Necessary and sufficient conditions are established by employing Pareto solutions of multiple-objective linear programming as well.

Highlights

  • This paper studies the inverse data envelopment analysis using the nonradial enhanced Russell model

  • Data envelopment analysis (DEA) is a nonparametric method based on linear programming for computing relative efficiencies of a decision making unit (DMU) by comparing it with other DMUs such that they produce the same multiple outputs by consuming the same multiple inputs

  • A typical inverse optimization problem on the nonradial enhanced Russell model has been studied: two main questions on inverse DEA have been discussed and the models have been proposed to estimate the input levels of a given DMU when some or all its output levels were increased under the constant Enhanced Russell Model (ERM)-efficiency score

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Summary

Introduction

Data envelopment analysis (DEA) is a nonparametric method based on linear programming for computing relative efficiencies of a decision making unit (DMU) by comparing it with other DMUs such that they produce the same multiple outputs by consuming the same multiple inputs. In the following, Hadi-Vencheh et al [16, 17] attempted to answer this question: “if among a group of DMUs, we increase certain outputs to a particular unit and assume that the DMU maintains its current efficiency level with respect to other DMUs, how much should the inputs of the DMU increase?” In their studies, the proposed models by Wei et al [14] have been developed. A new problem in inverse DEA field is introduced: “if among a group of DMUs for a particular unit, the decision maker is required to increase inputs and outputs, in which, the DMU maintains its current efficiency level with respect to other DMUs, how much should the inputs and outputs of the DMU increase?” Pareto solutions of MOLP are used to solve this problem.

Estimate Inputs
Estimate Outputs
Estimate the Minimum Increase of Inputs and the Maximum Increase of Outputs
Illustrative Examples
Conclusion
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