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Information Journal Paper

Title

SENSITIVITY ANALYSIS EFFICIENT UNITS IN DATA ENVELOPMENT ANALYSIS WITH VARIABLE RETURNS TO SCALE

Pages

 Start Page 55 | End Page 68

Abstract

 In this paper we consider the Variable Returns to Scale (VRS) Data Envelopment Analysis (DEA) model. In a DEA model each Decision Making Unit (DMU) is classified either as efficient or inefficient [1] . Changes are inputs or outputs of any DMU can alter its classification, i.e. an efficient DMU can become inefficient and vice versa. The goal of this paper is to assess changes in inputs and outputs of extreme efficient DMU [11] that will not alter its efficiency status, thus obtaining the region of efficiency for that DMU. The representation of this region is done using an iterative procedure. In the first step an excluded DEA model, whereby a DMU under evaluation is excluded from the reference set, is used. In the iterative part of the procedure, by using optimal simplex tableau we apply PARAMETRIC PROGRAMming, obtains optimal solution. Thus to finding dual solutions and solving facet equation and with iterating can move from one facet to the adjacent one and this operations continue until representing all facets for region of efficiency. At the end of the procedure we obtain the complete region of efficiency for a DMU under consideration.

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