A MIN-MAX NORMALIZED RANKING METHOD FOR FINDING THE MOST EFFICIENT DMUs IN DATA ENVELOPMENT ANALYSIS

This paper proposes a min-max normalized ranking method for finding the most efficient decision making units (DMUs) in Data Envelopment Analysis (DEA). The several cross efficiency (CE) methods have been developed as a DEA... [ view full abstract ]

This paper proposes a min-max normalized ranking method for finding the most efficient decision making units (DMUs) in Data Envelopment Analysis (DEA). The several cross efficiency (CE) methods have been developed as a DEA extension to rank efficient and inefficient DMUs with the main idea being to use DEA to do peer evaluation. But the serious weakness of these CE methods is that the efficiency scores may not be unique due to the non-uniqueness of the DEA optimal weights. Numerical examples are used to investigate the efficiency and robustness of the developed heuristic ranking method.