MODELS FOR IMPROVED EFFECTIVENESS BASED ON DEA EFFICIENCY RESULTS

Boaz Golany · Fred Young Phillips · John J. Rousseau

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Efficiency Analysis Using DEA Multi-Criteria Decision Making Optimization and Mathematical Programming

Abstract

Following the characterization via Data Envelopment Analysis (DEA) of managerial units as efficient or inefficient, management will wish to increase profitability and/or control costs while becoming (or remaining) technically efficient in the DEA sense. This paper presents three families of models for achieving this and describes the managerial situations in which they are useful. The first addresses the management of an existing Decision Making Unit (DMU) and die second attempts to identify the desired “location” for a new DMU. The third addresses the aggregate of all DMUs, reallocating scarce resources among them for maximum overall organizational profitability and technical efficiency.

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References

1978Measuring the efficiency of decision making units 1985Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions 1981Evaluating Program and Managerial Efficiency: An Application of Data Envelopment Analysis to Program Follow Through 1984Preface to topics in data envelopment analysis 1988An Interactive MOLP Procedure for the Extension of DEA to Effectiveness Analysis 1977An introductory view of management

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