Evaluation Of Slack Based Efficiency Of A Decision Making Unit

Data Envelopment Analysis has manifested itself as an outstanding data-oriented performance evaluation method when multiple outputs and inputs appear in a set of peer Decision Making Units (DMUs).This research article primarily focuses on the estimation of slack based measure of efficiency of a DMU. In terms of Shepard‘s distance functions, Farrell Efficiency (FE), Output Pure Technical Efficiency (OPTE), Output Overall Technical Efficiency (OOTE) and Output Scale Efficiency (OSE) has been proposed here. A Fractional Programming Problem (FPP) has been evaluated in order to compute the slack based measure of efficiency of a DMU and the definition of output distance function and its properties are also presented. Furthermore this paper proposes a slack based efficiency measurement problem as a fractional programming problem which is transformed into a linear programming problem.