Slacks-based Ranking Method in Data Envelopment Analysis

In order to assist the management to fully evaluate all decision making units(DMUs),this paper proposes a new ranking method using a slacks-based measure of influence.Based on data envelopment analysis(DEA),this paper utilizes input and output slacks to defineδ-efficiency,which is further used to differentiate efficient DMUs from inefficient ones,and to rankδ-inefficient DMUs.Forδ-efficient DMUs,their respective slacks-based measure of influence on other DMUs is studied for distinguishing and ranking.In that way,all DMUs,especially for those evaluated as efficient via conventional DEA models,can be fully and effectively differentiated and ranked by performance.Both numerical examples and real world application show that the proposed method is easy to apply,and demonstrates effective distinguishing power and reasonable results.