Volume 55, Number 6, November-December 2021
|Page(s)||3617 - 3638|
|Published online||10 December 2021|
Performance measurement using a novel directional distance function based super efficiency model and neighbourhood theory
National Institute of Technology, Mahatma Gandhi Avenue, Durgapur 713209, India
* Corresponding author: firstname.lastname@example.org
Accepted: 26 October 2021
This paper entails a systematic approach for measuring the Super Efficiency Scores of a set of rival firms. This evaluation process is dependent on the location of the worst Decision-Making Unit retained by the technology set. Unlike antecedent researches, the worst point is selected from a predefined neighbourhood with an application of a linear model. Finally, the new Super Efficiency model measures the Efficiency score while embedding the worst point within the direction vector. This two-stage model is akin to the standard form of a Directional Distance Function and does not end up with problems of infeasibility, negative data or zero data. In other words, the method is found robust to classify the Decision Making Units into the Super-Efficient, Strongly Efficient, Weakly Efficient and Inefficient groups. Two cases once addressed by Seiford and Zhu [INFORS 37 (1999) 174–187.] and Byrnes et al. [Manag. Sci. 30 (1984) 671–681.] are illustrated here to explore the functionality of the model in comparison to a few renowned ones.
Mathematics Subject Classification: 90C08
Key words: Data Envelopment Analysis / Super Efficiency Score / Directional Distance Function / infeasibility problem / neighbourhood theory
© The authors. Published by EDP Sciences, ROADEF, SMAI 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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