PARETO-EFFICIENT TARGET BY OBTAINING THE FACETS OF THE EFFICIENT FRONTIER IN DEA

Authors

  • S. Washio Department of Information Scie nce and Engineering, Graduate School of Science and Technology, Niigata University , Niigata 950-2181, Japan
  • S. Yamada Department of Information Science and Engineering, Graduate School of Science and Technology, Niigata University , Niigata 950-2181, Japan
  • T. Tanaka Department of Information Science and Engineering, Graduate School of Science and Technology, Niigata University , Niigata 950-2181, Japan
  • T. Tanino Division of Electrical, Electronic and Information Engineering, Graduate School of Engineering, Osaka University, Osaka 565-0871, Japan

Keywords:

DEA, Efficient frontier, Production possibility set, Pareto-efficient

Abstract

In this paper, we propose an algorithm to calculate an improvement target for each inefficient DMU in the CCR model by calculating all equations forming the facets of the efficient frontier. By introducing a parameter into the algorithm, we calculate a minimal distance point or a Pareto-efficient point on the efficient frontier as an improvement target. All improvement targets are obtained by solving quadratic mathematical problems.

Additional Files

Published

12/21/2011

Issue

Section

Research Articles