Integrated slacks-based measure of efficiency and super-efficiency in Data Envelopment Analysis
23 Jul 2018Dr Trung Hieu Tran and the co-authors have recently published a paper in the International Journal of Management Science (OMEGA, impact factor: 4.311). The paper describes an integrated slacks-based model for measuring the efficiency of decision-making units in Data Envelopment Analysis. The model has been applied for evaluating the sustainability of construction firms in Nottingham, UK in terms of financial aspects. It supports the firms in recognising the strength and weakness to improve and obtain the sustainable development.
In this paper, we develop an integrated model for slacks-based measure (SBM) simultaneously of both the efficiency and the super-efficiency for decision-making units (DMUs) in data envelopment analysis (DEA). Unlike the traditional solution approaches in which we need to identify the efficient DMUs by the SBM model of Tone (2001) [20] before applying the super SBM model of Tone (2002) [21] for the DMUs to achieve their super-efficiency scores, our integration can obtain the efficiency scores of the inefficient DMUs and the super-efficiency scores of the efficient DMUs by solving simultaneously these two models by an one-stage approach. Therefore, it may save computational time for large-scale practical applications. Due to the non-linearity in the objective function of this integrated model, we develop a linearisation technique to deal with the non-linear model. The numerical experiments, carried out on several examples in the literature and a case study, have demonstrated the accuracy and the computational time effectiveness of our proposed model as compared with the traditional solution approaches.
Article link: https://www.sciencedirect.com/science/article/pii/S0305048317308472?via%3Dihub