“…To avoid nonlinearity, the present paper only discussed the two-phase NR approach under the assumption that the weights be known a priori. Seventh, it should be noted that finding the reference set and the benchmarks of DMUs is one of the most important issues in the standard DEA which some researchers (such as Jahanshahloo, Shirzadi and Mirdehghan (2008); Krivonozhko, Førsund and Lychev (2012); Mehdiloozad, Mirdehghan, Sahoo and Roshdi (2015)) have focused on.…”
“…To avoid nonlinearity, the present paper only discussed the two-phase NR approach under the assumption that the weights be known a priori. Seventh, it should be noted that finding the reference set and the benchmarks of DMUs is one of the most important issues in the standard DEA which some researchers (such as Jahanshahloo, Shirzadi and Mirdehghan (2008); Krivonozhko, Førsund and Lychev (2012); Mehdiloozad, Mirdehghan, Sahoo and Roshdi (2015)) have focused on.…”
“…In these models, SUs and DMUs are different, and the reference sets for DMUs are composed of efficient SUs instead of efficient DMUs [31]- [33]. Hibiki [34], Krivonozhko et al [35], and Mehdiloozad et al [36] also researched the effects of the reference set on the results of efficiency evaluation. This kind of DEA model can be called G-DEA (DEA models with generalized reference sets).…”
The development of the pallet rental industry is moving at a rapid pace. However, there is no literature on the performance evaluation of pallet rental companies except our previous study. This paper contributes to extending our previous super-efficiency integer-valued DEA (data envelope analysis) model to a group of integer-valued DEA models with generalized reference sets (G-IDEA). According to the proposed approach, the reference sets for decision-making units (DMUs) are composed of proper efficient sample units instead of efficient DMUs. These sample units, which may or may not be the same as DMUs, can be selected by decision-makers according to their demand. The advantages of the G-IDEA models are as follows: (1) they can be applied to find the projections of pallet rental companies with real-valued and integer-valued variables on the efficient frontier; (2) they are able to help the decision-makers in inefficient pallet rental companies make a step by step efficiency improvement scheme. Particularly, we develop a non-oriented integer-valued DEA model with generalized reference sets (NG-IDEA). The NG-IDEA model can be used to figure out how to improve the performance of inefficient pallet rental companies by simultaneously decreasing inputs and increasing outputs. The proposed models are applied to the performance evaluation of ten pallet rental companies. The results of the case study prove the effectiveness of our models. Furthermore, some valuable suggestions on how to improve the efficiency of inefficient pallet rental companies are presented based on the results.
“…Let fl + 1. Find the normal vector ( −1 ) of the PPS at ( −1 , −1 ) by solving problem (4). Consider ( ∈ {1, 2, .…”
Section: Finding the Most Preferred Dmu In Dea: An Algorithmmentioning
confidence: 99%
“…Zhu [2] has gathered preference information from decision-maker and then has obtained target by means of these pieces information. Also, Jahanshahloo et al [3] and Mehdiloozad et al [4] have proposed two approaches to find the reference set of an inefficient DMU.…”
Data envelopment analysis (DEA) evaluates the efficiency of the transformation of a decision-making unit’s (DMU’s) inputs into its outputs. Finding the benchmarks of a DMU is one of the important purposes of DEA. The benchmarks of a DMU in DEA are obtained by solving some linear programming models. Currently, the obtained benchmarks are just found by using the information of the data of inputs and outputs without considering the decision-maker’s preferences. If the preferences of the decision-maker are available, it is very important to obtain the most preferred DMU as a benchmark of the under-assessment DMU. In this regard, we present an algorithm to find the most preferred DMU based on the utility function of decision-maker’s preferences by exploring some properties on that. The proposed method is constructed based on the projection of the gradient of the utility function on the production possibility set’s frontier.
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