An Interactive MOLP Procedure for the Extension of DEA to Effectiveness Analysis

This paper presents a new, interactive multi-objective linear-programming procedure to aid decision-makers in setting up goals for desired outputs. The procedure relies on empirical production functions generated by the use of data envelopment analysis. It presents the decision-maker with a set of alternative efficient points in order either to compare different sets of inputs in terms of their effectiveness for goal achievement, or to set goals against which future management performance may be measured. With each iteration the new information provided by the decision-maker is used to adjust the procedure, leading to points which have greater effectiveness utility for the decision-maker. A numerical example is provided along with guidelines for future applications.