Approaches to determining the relative importance weights for cross-efficiency aggregation in data envelopment analysis

Y M Wang and S Wang
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Y M Wang: Fuzhou University, Fuzhou, PR China
S Wang: The University of Manchester, Manchester, UK

Journal of the Operational Research Society, 2013, vol. 64, issue 1, 60-69

Abstract: Cross-efficiency evaluation has been widely used for identifying the most efficient decision making unit (DMU) or ranking DMUs in data envelopment analysis (DEA). Most existing approaches for cross-efficiency evaluation are focused on how to determine input and output weights uniquely, but pay little attention to the aggregation process of cross-efficiencies and simply aggregate them equally without considering their relative importance. This paper focuses on aggregating cross-efficiencies by taking into consideration their relative importance and proposes three alternative approaches to determining the relative importance weights for cross-efficiency aggregation. Numerical examples are examined to show the importance and necessity of the use of relative importance weights for cross-efficiency aggregation and the most efficient DMU can be significantly affected by taking into consideration the relative importance weights of cross-efficiencies.

Date: 2013
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