EVALUATION OF DECISION-MAKING UNITS BASED ON THE WEIGHT-OPTIMIZED DEA MODEL

Data envelopment analysis (DEA) is a methodology for measuring best relative efficiencies of a group of peer decision-making units (DMUs) that take multiple inputs to produce multiple outputs. However, the traditional DEA model only aims to maximize the efficiency of the DMU under evaluation. This usually leads to very small weights (even zero weights) being assigned to some inputs or outputs. Correspondingly, these inputs or outputs have little or even no contribution to efficiency, which is unfair and irrational. The purpose of this paper is to address this problem. Two new weight-optimized models are proposed based upon the perspective of cross evaluation. Using the results of an Advanced Manufacturing Technology (AMT) example, it is found that all AMTs are fully sorted. The decision maker can easily choose the best AMT. In addition, unreasonable weights of AMTs are effectively avoided.