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Multiple Criteria DEA-Based Ranking Approach With the Transformation of Decision-Making Units

Multiple Criteria DEA-Based Ranking Approach With the Transformation of Decision-Making Units

Jae-Dong Hong
Copyright: © 2021 |Volume: 8 |Issue: 1 |Pages: 20
ISSN: 2155-4153|EISSN: 2155-4161|EISBN13: 9781799862345|DOI: 10.4018/IJAIE.20210101.oa2
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MLA

Hong, Jae-Dong. "Multiple Criteria DEA-Based Ranking Approach With the Transformation of Decision-Making Units." IJAIE vol.8, no.1 2021: pp.1-20. http://doi.org/10.4018/IJAIE.20210101.oa2

APA

Hong, J. (2021). Multiple Criteria DEA-Based Ranking Approach With the Transformation of Decision-Making Units. International Journal of Applied Industrial Engineering (IJAIE), 8(1), 1-20. http://doi.org/10.4018/IJAIE.20210101.oa2

Chicago

Hong, Jae-Dong. "Multiple Criteria DEA-Based Ranking Approach With the Transformation of Decision-Making Units," International Journal of Applied Industrial Engineering (IJAIE) 8, no.1: 1-20. http://doi.org/10.4018/IJAIE.20210101.oa2

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Abstract

Though various ranking methods in the data envelopment analysis (DEA) context have emerged since the conventional DEA was introduced, none of them has not been accepted as a universal or a superior method for ranking decision-making units (DMUs). The DEA-based ranking methods show some shortcomings as the numbers of inputs and outputs for DMUs increase. To overcome such shortcomings, this paper proposes a two-step procedure of ranking DMUs more effectively and consistently. In the first step, the multi-objective programming (MOP) is applied for the multiple criteria DEA to transform the original DMUs into the new simpler DMUs with two inputs and a single output, regardless of the numbers of inputs and outputs that the original DMUs use and produce. With the transformed DMUs, some conventional DEA based-methods for ranking DMUs are applied in the second step. A numerical example demonstrates the efficient performance of the proposed method.