SETTING PERFORMANCE TARGETS FOR NEW DECISION-MAKING UNITS IN DEA

This paper examines the problem of setting targets for a new decision making unit so that the efficiency of that DMU relative to existing un its will be at or better than some preset floor performance level. Whi le this problem can arise both on the input and output side, the devel opment here pertains only to the case where outputs are given, while t arget inputs are to be determined. The situation is examined where lim its may be imposed on the potential target inputs. The possibility of nondiscretionary factors is also considered.