Abstract
In this paper a new Data Envelopment Analysis (DEA) target setting approach is proposed based on a modification of the discrete Raiffa solution of bargaining problems. It is a multistage method that in the first step moves along the segment towards the ideal point, advancing along it as much as possible. If that first intermediate operating point is weak efficient (i.e. some input or output dimensions can be further improved) then the ideal point in the corresponding subspace is computed and a step towards it is taken and so forth until an efficient target is computed. Unlike the discrete Raiffa solution, the procedure is guaranteed to stop after a finite number of steps. The procedure is units and translation invariant and also provides an efficiency measure. The proposed approach can handle preference structure, non-discretionary variables and undesirable outputs.
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Acknowledgements
This research was carried out with the financial support of the Spanish Ministry of Economy, Industry and Competitiveness, DPI2017-85343-P. Narges Soltani acknowledges the support of a grant from the Ministry of Science, Research and Technology of the Islamic Republic of Iran. The authors are also grateful to the reviewers for their helpful comments and suggestions.
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Lozano, S., Soltani, N. A modified discrete Raiffa approach for efficiency assessment and target setting. Ann Oper Res 292, 71–95 (2020). https://doi.org/10.1007/s10479-020-03662-0
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DOI: https://doi.org/10.1007/s10479-020-03662-0