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Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/19653

Title: On variable reductions in data envelopment analysis with an illustrative application to a gas company
Authors: Toloo, M.
Babaee, Seddigheh
Issue Date: 2015
Abstract: Data envelopment analysis (DEA) is a non-parametric data oriented method for evaluating relative efficiency of the number of decision making units (DMUs) based on pre-selected inputs and outputs. In some real DEA applications, the large number of inputs and outputs, in comparison with the number of DMUs, is a pitfall that could have major influence on the efficiency scores. Recently, an approach was introduced which aggregates collected inputs and outputs in order to reduce the number of inputs and outputs iteratively. The purpose of this paper is to show that there are three drawbacks in this approach: instability due to existence of an infinitesimal epsilon, iteratively which can be improved to just one iteration, and providing non-radial inputs and outputs and then capturing them. In order to illustrate the applicability of the improved approach, a real data set involving 14 large branches of National Iranian Gas Company (NIGC) is utilized.
Notes: Toloo, M (reprint author), VSB TU Ostrava, Fac Econ, Sokolska Tr 33, Ostrava 70121 1, Ostrava, Czech Republic. mehdi.toloo@vsb.cz
URI: http://hdl.handle.net/1942/19653
DOI: 10.1016/j.amc.2015.06.122
ISI #: 000364247000045
ISSN: 0096-3003
Category: A1
Type: Journal Contribution
Validation: ecoom, 2016
Appears in Collections: Research publications

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