Piecewise Linear Virtual Inputs/Outputs in Interval DEA

Yiannis G. Smirlis and Dimitris K. Despotis
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Yiannis G. Smirlis: IT & Infrastructure Division, University of Piraeus, Piraeus, Greece
Dimitris K. Despotis: Department of Informatics, University of Piraeus, Piraeus, Greece

International Journal of Operations Research and Information Systems (IJORIS), 2013, vol. 4, issue 2, 36-49

Abstract: A recent development in data envelopment analysis (DEA) concerns the introduction of a piece-wise linear representation of the virtual inputs and/or outputs as a means to model situations where the marginal value of an output (input) is assumed to diminish (increase) as the output (input) increases. Currently, this approach is limited to crisp data sets. In this paper, the authors extend the piece-wise linear approach to interval DEA, i.e. to cases where the input/output data are only known to lie within intervals with given bounds. The authors also define appropriate interval segmentations to implement the piece-wise linear forms in conjunction with the interval bounds of the input/output data and the authors propose a new models, compliant with the interval DEA methodology. They finally illustrate their developments with an artificial data set.

Date: 2013
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