2011International Transactions in Operational ResearchRequires access

An enumeration algorithm for integer-valued data envelopment analysis

Mohammadreza Alirezaee, Mohammadreza Rafiee Sani

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Abstract

Data envelopment analysis (DEA) models assume real-valued inputs and outputs, but on many occasions, some inputs and/or outputs can only take integer values. In these cases, using DEA models can result in misleading efficiency assessments and inaccurate performance targets. In this paper, we propose an enumeration algorithm for computing efficiency scores and performance targets of decision-making units with integer value inputs/outputs. In the presented algorithm, we do not use any of the mixed integer linear programming (MILP) models that are used in previous studies. We show that the result of our algorithm and that of the MILP model presented in this context is the same. We also generalize our algorithm for different types of returns to scale as well as for the hybrid setting with real-valued data.

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What this paper is about

Data envelopment analysis (DEA) models assume real-valued inputs and outputs, but on many occasions, some inputs and/or outputs can only take integer values. In these cases, using DEA models can result in misleading efficiency assessments and inaccurate performance targets. In this paper, we propose an enumeration algorithm for computing efficiency scores and performance targets of decision-making units with integer value inputs/outputs. In the presented algorithm, we do not use any of the mixed integer linear programming (MILP) models that are used in previous studies. We show that the result of our algorithm and that of the MILP model presented in this context is the same. We also generalize our algorithm for different types of returns to scale as well as for the hybrid setting with real-valued data.

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Available abstract

Data envelopment analysis (DEA) models assume real-valued inputs and outputs, but on many occasions, some inputs and/or outputs can only take integer values. In these cases, using DEA models can result in misleading efficiency assessments and inaccurate performance targets. In this paper, we propose an enumeration algorithm for computing efficiency scores and performance targets of decision-making units with integer value inputs/outputs. In the presented algorithm, we do not use any of the mixed integer linear programming (MILP) models that are used in previous studies. We show that the result of our algorithm and that of the MILP model presented in this context is the same. We also generalize our algorithm for different types of returns to scale as well as for the hybrid setting with real-valued data.

Key concepts: Data envelopment analysis, Enumeration, Integer programming, Integer (computer science), Context (archaeology), Mathematical optimization, Computer science, Linear programming

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