A Centralized Case of Cost Efficiency in Data Envelopment Analysis

In this paper, we proposed a centralized way for measuring cost efficiency (CE) in Data Envelopment Analysis (DEA). This approach based on Fare cost efficiency model to obtain CE. In Fare’s method to obtain CE, a linear programming problem should solve for each DMU, separately. This procedure needs a long computational process. In this paper, we propose a new approach for measuring CE and calculate the cost efficiency of all DMUs by solving only one linear programming problem. This approach reduces the computational process and it will illustrated by an example.