Technical Note
Journal of the Operational Research Society (2008) 59, 860–862; doi:10.1057/palgrave.jors.2602411 Published online 4 April 2007
Slack-based ranking method: an interpretation to the cross-efficiency method in DEA
C-P Bao1, T-H Chen2 and S-Y Chang3
- 1I-Shou University, Taiwan, ROC
- 2Far-East University, Taiwan, ROC
- 3National Cheng-Kung University, Taiwan, ROC
Correspondence: T.-H. Chen, Department of Industrial and Business Management, Far-East University, No. 49, Chung-Hua Road, Hsin-Shih, Tainan County 744, Taiwan, ROC. E-mail: thchen@cc.feu.edu.tw
Received December 2005; Accepted January 2007; Published online 4 April 2007.
Abstract
The cross-efficiency method is generally utilized to rank decision-making units (DMUs) in data envelopment analysis (DEA) based on peer-evaluation logic. This brief note provides a method of using the available information from the linear program outputs to calculate the ranking of all DMUs with fewer computations and offers an alternative interpretation to the cross-efficiency method based on slack analysis in DEA.
Keywords:
data envelopment analysis, cross-efficiency, ranking, slack
