Some comments on improving discriminating power in data envelopment models based on deviation variables framework

Mahdi Mahdiloo, Sungmook Lim, Thach Thao Duong, Charles Harvie

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

Ghasemi, Ignatius, and Rezaee (2019) (Improving discriminating power in data envelopment models based on deviation variables framework. European Journal of Operational Research 278, 442– 447) propose a procedure for ranking efficient units in data envelopment analysis (DEA) based on the deviation variables framework. They claim that their procedure improves the discriminating power of DEA and can be an alternative to the super-efficiency model that is well-known to have the infeasibility problem and the cross-efficiency approach which suffers from the presence of multiple optimal solutions. However, we demonstrate, in this short note, that their procedure is developed based upon inappropriate use of deviation variables which leads to the development of a ranking approach that does not meet their expectations and as a result, an unreasonable ranking of decision making units (DMUs). We also show that the use of deviation variables, if interpreted and used correctly, can lead to developing a cross-inefficiency matrix and approach.

Original languageEnglish
Pages (from-to)394-397
Number of pages4
JournalEuropean Journal of Operational Research
Volume295
Issue number1
Early online date3 Mar 2021
DOIs
Publication statusPublished - 16 Nov 2021
Externally publishedYes

Keywords

  • Cross-inefficiency
  • Data envelopment analysis
  • Deviation variables
  • Discriminating power
  • Ranking

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