An application of sensitivity analysis in data envelopment analysis

Sufficient conditions for an efficient Decision Making Unit (DMU) to preserve its efficiency according to the additive model of Data Envelopment Analysis (DEA) were obtained by Charnes and Neralic [7] for the case with different parameters for all outputs and for all inputs. Using two parameters only, one for outputs and the other for inputs, similar sufficient conditions are obtained in this paper. These conditions are applied to the case of a bank branches operating efficiency assessment. Following Neralic and Sikora [10], 15 bank branches of a commercial bank using 3 inputs and producing 2 outputs an: considered. For each DMU, efficient according to the additive model, a region of efficiency is obtained. In that region inputs and outputs of the corresponding efficient DMU can be changed and its efficiency is preserved.