Evaluation of Financial Ratios in DEA-R model with production trade–offs and weight restrictions

Authors

  • Masoud Sanei Department of Mathematics, Central Branch, Islamic Azad University, Tehran, Iran
  • Farhad Hosseinzadeh lotfi
  • Mohammad reza Mozaffari
  • Mohsen Mirzaiyan

DOI:

https://doi.org/10.30495/jme.v13i0.628

Keywords:

DEA, Efficiency, DEA-R, weights restrictions, trade – off.

Abstract

Data envelopment analysis (DEA) is one of the best tools for evaluating units with multiple inputs and multiple outputs. In multiplier models of  DEA sometimes data on inputs or outputs is available, and/or some assumptions are imposed to the model that result in some conditions on weights vectors, in addition to non-negative conditions of the weight vectors of u and v. These conditions are called weights restrictions. Applying weights restrictions on the multiplier model creates new variables in its corresponding DEA model. Thus, applying weights restrictions on the multiplier model leads to the development of technology model in the envelopment form. This makes the projection of an inefficient unit that is on the efficiency frontier of the developed technology not to be necessarily producible. Therefore, applying weights restrictions on multiplier models will enjoy this defect. To solve this problem weights restrictions are applied through the trade-off matrix that is a simultaneous change in inputs and outputs. Applying weights restrictions in DEA model helps us keep under control the significance of one output to other output or the significance of one input to other input and/or the significance of one output to one input.

Downloads

Published

2019-01-08

Issue

Section

Vol. 13, No. 2, (2019)