Ranking DMUs by using the upper and lower bounds of the normalized efficiency in data envelopment analysis

Abstract In data envelopment analysis, the existing methods for measuring the relative efficiencies of decision making units (DMUs) are to compare DMUs relative to the best or the worst of all DMUs. In this paper, we consider both the best DMU and the worst DMU as the reference DMUs and propose the normalized efficiency. Further, from the optimistic and pessimistic viewpoints, we construct two DEA models to obtain the upper and lower bounds of the normalized efficiency and then achieve an interval efficiency evaluation to rank all DMUs completely. Finally, two examples are presented to illustrate the performance of the interval efficiency evaluation.

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