Determining the practical frontier for decision-making units by developing a new additive model in the DEA

Document Type : Research Paper

Authors

1 Department of Mathematics, Central Tehran Branch, Islamic Azad University, Tehran, Iran

2 Department of Mathematics, South Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

Data envelopment analysis (DEA) assigns a score to each unit of the decision-making units being analyzed indicating the efficiency or inefficiency of that unit over the other units. However, in the early DEA models, there is no strategy to improve the efficiency of the efficient units. Therefore, in Paradi & Sowlati's (2004) practical boundary theory, they tried to expand these models to increase the efficiency of the efficient decision-making units. They had a basis for improving performance to a certain extent, thus, they presented the P-DEA linear programming model to extend the efficiency of the efficient units. Because of the staff management in organizations, it is important to increase the efficiency units in order to improve the organization based on the possible changes in the level of input and output of decision-making units. This is done to produce newly advanced based on the efficiency of these new units. In this research, after studying the P-DEA model thoroughly, we identified its drawbacks and proposed a new method for determining the practical boundary by developing an additive model using an example.

Keywords

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Volume 13, Issue 2
July 2022
Pages 253-263
  • Receive Date: 08 November 2021
  • Revise Date: 08 December 2021
  • Accept Date: 19 January 2022