A modified DEA cross efficiency method with negative data and its application in supplier selection

Mehdi Soltanifar () and Hamid Sharafi ()
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Mehdi Soltanifar: Islamic Azad University
Hamid Sharafi: Islamic Azad University

Journal of Combinatorial Optimization, 2022, vol. 43, issue 1, No 14, 265-296

Abstract: Abstract Basic Data Envelopment Analysis (DEA) models are designed for non-negative data. However, negative data is inevitably used in many real-world issues. Also, multiple units with a maximum relative performance score (equal to one) can be obtained due to the benevolent view of evaluating Decision Making Units (DMUs) consistent performance. Therefore, the researchers proposed ranking models to differentiate efficient units. Cross efficiency is one of the most useful tools for DMUs ranking in the DEA. There are two major drawbacks to implementing this process. First, it gives different results in the presence of other optimal solutions; second, it does not provide a compelling reason to use the arithmetic mean to aggregate the results of the cross efficiency matrix. In this paper, first a new non-radial model is proposed to evaluate the performance of DMUs in the presence of negative data and then based on this model a new secondary goal model is proposed to eliminate the first drawback in the cross efficiency method. Also, to solve the second drawback in this method, a hybrid Multi-Attribute Decision Making (MADM)-DEA process with the help of fuzzy VlseKriterijumska Optimizacija I Kompromisno Resenje method is proposed. Finally, to show the applicability of the proposed methods, the results are used to select the supplier in a real-world problem.

Keywords: Data Envelopment Analysis (DEA); Negative data; Cross efficiency evaluation method; Fuzzy VIKOR method; Supplier selection (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s10878-021-00765-7

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