Interactive multiobjective DEA target setting using lexicographic DDF

¹ School of Information Technology, York University, Toronto, Canada
² Dept. of Industrial Management, University of Seville, Sevilla, Spain
³ Escuela Superior de Ingenieros, Camino de los Descubrimientos, s/n, 41092 Sevilla, Spain

^* Corresponding author: slozano@us.es

Received: 5 October 2018
Accepted: 10 November 2019

Abstract

In this paper, a new interactive multiobjective target setting approach based on lexicographic directional distance function (DDF) method is proposed. Lexicographic DDF computes efficient targets along a specified directional vector. The interactive multiobjective optimization approach consists in several iteration cycles in each of which the Decision Making Unit (DMU) is presented a fixed number of efficient targets computed corresponding to different directional vectors. If the DMU finds one of them promising, the directional vectors tried in the next iteration are generated close to the promising one, thus focusing the exploration of the efficient frontier on the promising area. In any iteration the DMU may choose to finish the exploration of the current region and restart the process to probe a new region. The interactive process ends when the DMU finds its most preferred solution (MPS).