Alternative targets for data envelopment analysis through multi-objective linear programming: Rio de Janeiro Odontological Public Health System Case Study

J Quariguasi Frota Neto () and L Angulo-Meza
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J Quariguasi Frota Neto: Rotterdam School of Management, Erasmus University
L Angulo-Meza: Universidade Federal Fluminense

Journal of the Operational Research Society, 2007, vol. 58, issue 7, 865-873

Abstract: Abstract In the last 10 years much has been written about the drawbacks of radial projection. During this time, many authors proposed methods to explore, interactively or not, the efficient frontier via non-radial projections. This paper compares three families of data envelopment analysis (DEA) models: the traditional radial, the preference structure and the multi-objective models. We use the efficiency analysis of Rio de Janeiro Odontological Public Health System as a background for comparing the three methods through a real case with one integer and one exogenous variable. The objectives of the study case are (i) to compare the applicability of the three approaches for efficiency analysis with exogenous and integer variables, (ii) to present the main advantages and drawbacks for each approach, (iii) to prove the impossibility to project in some regions and its implications, (iv) to present the approximate CPU time for the models, when this time is not negligible. We find that the multi-objective approach, although mathematically equivalent to its preference structure peer, allows projections that are not present in the latter. Furthermore, we find that, for our case study, the traditional radial projection model provides useless targets, as expected. Furthermore, for some parts of the frontier, none of the models provide suitable targets. Other interesting result is that the CPU-time for the multi-objective formulation, although its endogenous high complexity, is acceptable for DEA applications, due to its compact nature.

Keywords: data envelopment analysis; multi-objective programming; optimization (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (4)

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DOI: 10.1057/palgrave.jors.2602216

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