THE COST EFFICIENCY WITH DEA-R MODEL

In Data envelopment analysis (DEA), cost efficiency of a decision making unit (DMU) is obtained according to minimum ratio of costs to actual cost for a given output. Since by combining the DEA and Ratio analysis, the Ratio DEA (DEA-R) model eliminates some bugs therefore, in this article the cost efficiency based on DEA-R is suggested. Reasons of applying the DEA-R for finding cost efficiency are the quality of cost efficiency scale in multi input and output cases and vice versa, and also, mandatory usage of the DEA models from weight restrictions. Finally cost efficiency are compared based on DEA and DEA-R models in 21 Taiwan medical center.

Keywords:

DEA , DEA-R , Cost efficiency