Determining radial efficiency with a large data set by solving small-size linear programs

Wen-Chih Chen () and Sheng-Yung Lai
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Wen-Chih Chen: National Chiao Tung University
Sheng-Yung Lai: National Chiao Tung University

Annals of Operations Research, 2017, vol. 250, issue 1, No 10, 147-166

Abstract: Abstract This paper presents a new algorithm for determining radial efficiency with a large data set by using small-size linear programs (LPs). Instead of trying to “reduce” the size of individual LPs, the proposed algorithm attempts to “control” the size of individual LPs, e.g., no more than 100 data points each time while maintaining the solution quality. The algorithm is specifically designed to address the problem of LP size limitation. From the empirical results, we conclude that the proposed algorithm can converge within a reasonable number of iterations without incurring extra computation time and has savings of up to 60 % of the benchmarks when the data set contains 15,000 points.

Keywords: Data envelopment analysis; Radial efficiency; Large-scale computation (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10479-015-1968-4

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