Kybernetika 49 no. 4, 619-635, 2013

Finding target units in FDH model by least-distance measure model

Ali Ebrahimnejad, Reza Shahverdi, Farzad Rezaee Balf and Maryam Hatefi

Abstract:

Recently, some authors used the Least-Distance Measure model in order to obtain the shortest distance between the evaluated Decision Making Unit (DMU) and the strongly efficient production frontier. But, their model is not applicable for situation in which the production possibility set satisfies free disposability property. In this paper, we propose a new approach to this end in FDH model which improves the application potential of the Least-Distance Measure and overcomes the mentioned shortcoming. The applicability of the proposed method is illustrated with two numerical examples and proves to be persuasive and acceptable to real-world problem.

Keywords:

data envelopment analysis, least distance, FDH, target unit

Classification:

90C05, 90BXX

paper.pdf

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