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A modified slacks‐based ranking method handling negative data in data envelopment analysis
Author(s) -
Wei Fangqing,
Song Jiayun,
Jiao Chuanya,
Yang Feng
Publication year - 2019
Publication title -
expert systems
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 38
eISSN - 1468-0394
pISSN - 0266-4720
DOI - 10.1111/exsy.12329
Subject(s) - data envelopment analysis , ranking (information retrieval) , computer science , measure (data warehouse) , set (abstract data type) , data mining , data set , mathematical optimization , artificial intelligence , mathematics , programming language
Performance ranking for a set of comparable decision‐making units (DMUs) with multiple inputs and outputs is an important and often‐discussed topic in data envelopment analysis (DEA). Conventional DEA models distinguish efficient units from inefficient ones but cannot further discriminate the efficient units, which all have a 100% efficiency score. Another weakness of these models is that they cannot handle negative inputs and/or outputs. In this paper, a new modified slacks‐based measure is proposed that works in the presence of negative data and provides quantitative data that helps decision makers obtain a full ranking of DMUs in situations where other methods fail. In addition, the new method has the properties of unit invariance and translation invariance, and it can give targets for inefficient DMUs to guide them to achieve full efficiency. Two numerical examples are analysed to demonstrate the usefulness of the new method.