Jh. Dula et Bl. Hickman, EFFECTS OF EXCLUDING THE COLUMN BEING SCORED FROM THE DEA ENVELOPMENTLP TECHNOLOGY MATRIX, The Journal of the Operational Research Society, 48(10), 1997, pp. 1001-1012
Citations number
24
Categorie Soggetti
Management,"Operatione Research & Management Science","Operatione Research & Management Science
The reformulation of the envelopment linear programs in DEA to score a
decision making unit (DMU) by excluding the corresponding column from
the technology matrix raises several theoretical and computational qu
estions. This idea appears natural and has been proposed before, but o
nly recently has it appeared in published form. Several issues associa
ted with this modification to standard DEA analysis remain to be forma
lly and comprehensively explored. One is the feasibility of the result
ant LPs which, as it turns out, is not guaranteed under this modificat
ion in some of the DEA models. Therefore, the status of the DMU for wh
ich the LP is infeasible needs to be resolved. Other issues include th
e formal equivalence relation between the modified and standard formul
ations; the impact on the problem of pervasive degeneracy in the LPs a
nd the interpretation of the optimal solutions. This paper investigate
s these issues and others so as to provide both a firm theoretical bas
is for the proposed modification in all four convexified free-disposab
ility DEA models and a thorough analysis of the associated effects.