A Preference Directional Distance Model for DEA with Negative Inputs/Outputs (original) (raw)

Abstract

The traditional DEA models have this assumption that all inputs and outputs are non-negative. But the recent decade articles have proposed variation examples of situations in which both negative inputs and negative outputs occur and have suggested models for dealing with these situations. Portela et al. (2004)[1] proposed the Range Directional Model (RDM) which was inspired by the directional distance model of Chambers et al. (1996, 1998)[2,3]. In this paper by using an M CDM methodology for finding an appropriate direction of improvement we propose a new directional model which is based on the importance of inputs and outputs for each DMU. Then, we compare our model with the other models by an example.

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