Using slack-based efficiency measure in worst practice frontier dea

Cheng Li Chen, Fuh-Hwa Liu*

*Corresponding author for this work

Research output: Contribution to conferencePaperpeer-review

Abstract

An original DEA model is to evaluate each decision making unit (DMU) with a set of most favorable weights. The efficient DMUs obtained from original DEA construct an efficient (best practice) frontier. Original DEA can be considered as identifying good (efficient) performers in most favorable scenario. For the purpose of identifying bad performers such as bankrupt firms in most adverse scenario, radial worst practice frontier DEA (WPF-DEA) model in which "worst efficient" DMUs construct a worst practice frontier has been proposed. To identify bad performers together with the slack values we formulate another model called WPF-SBM. Then we develop HypoSBM model to distinguish the worst performers from bad performers. Finally, a solution approach is suggested to fully rank worst efficiencies in most adverse scenario.

Original languageEnglish
Pages796-809
Number of pages14
StatePublished - 2006
Event36th International Conference on Computers and Industrial Engineering, ICC and IE 2006 - Taipei, Taiwan
Duration: 20 Jun 200623 Jun 2006

Conference

Conference36th International Conference on Computers and Industrial Engineering, ICC and IE 2006
Country/TerritoryTaiwan
CityTaipei
Period20/06/0623/06/06

Keywords

  • Data envelopment analysis
  • Most adverse scenario
  • Risk analysis
  • Slack-based efficiency measure
  • Worst efficiency
  • Worst practice frontier

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