Jh. Dula et N. Venugopal, ON CHARACTERIZING THE PRODUCTION POSSIBILITY SET FOR THE CCR RATIO MODEL IN DEA, International Journal of Systems Science, 26(12), 1995, pp. 2319-2325
Citations number
12
Categorie Soggetti
System Science","Computer Science Theory & Methods","Operatione Research & Management Science
This work makes two contributions. The first is to establish the relat
ion between the production possibility set in the CCR ratio model and
a polyhedral cone. The relation is based on a one-to-one correspondenc
e between elements from a well-defined subset of the generators which
are extreme rays of the cone and the extreme-efficient DMUs of the pro
duction possibility set. The second contribution is to demonstrate tha
t the reduced set of extreme-efficient DMUs is sufficient to perform D
EA analysis on a complete data set. Therefore, the polyhedral cone pro
posed here may be used to obtain the extreme-efficient DMUs a priori i
n a CCR ratio problem and using this set all other DMUs can be subsequ
ently scored. This two-stage approach to DEA offers several potential
advantages. One is that a body of work on finding extreme rays of fini
tely generated cones becomes directly relevant to DEA analysis. Other
advantages include working with smaller linear programs, not having to
check for 'weak' efficiency from among the extreme-efficient DMUs, an
d occurrence of induced degeneracy.