Models for improved effectiveness based on DEA efficiency results

B. Golany, F. Y. Phillips, J. J. Rousseau

Research output: Contribution to journalArticlepeer-review

Abstract

Following the characterization via Data Envelopment Analysis (DEA) of managerial units as efficient or inefficient, management will wish to increase profitability and/or control costs while becoming (or remaining) technically efficient in the DEA sense. This paper presents three families of models for achieving this and describes the managerial situations in which they are useful. The first addresses the management of an existing Decision Making Unit (DMU) and the second attempts to identify the desired “location” for a new DMU. The third addresses the aggregate of all DMUs, reallocating scarce resources among them for maximum overall organizational profitability and technical efficiency.

Original languageEnglish
Pages (from-to)2-10
Number of pages9
JournalIIE Transactions (Institute of Industrial Engineers)
Volume25
Issue number6
DOIs
StatePublished - Nov 1993

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering

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