Implementation of the algorithm for improving the frontier in DEA models (original) (raw)

2020

Abstract

It is well known that many inefficient units are projected onto the weakly efficient parts of the frontier under computing efficiency scores. However, according to the data envelopment analysis approach, the efficiency score of inefficient units has to be measured relative to efficient ones. In our previous papers, we introduced the notion of terminal units and proposed to use them for improving the frontier. In this paper, we describe two possible scenarios and discuss some aspects of algorithm implementation. Our theoretical results are verified by computational experiments using real-life data sets and confirmed by graphical examples.

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