A Procedure for Generating Efficient Frontier Using DEA -IMRP

Data Envelopment Analysis (DEA) is a mathematical programming technique for evaluate the relative efficiency of each Decision Making Unit (DMU) with multiple inputs and multiple outputs. Recently observed several equivalence models between the output-oriented DEA and Multiple Objective Linear Programming (MOLP) models and how a DEA problem can be solved interactively by transforming it into an MOLP formulation. Various interactive multi objective models would be used to solve DEA problems such that the DM can then search along the efficient frontier to locate the most preferred solution where resource allocation. A DEA-oriented Interactive Minimax Reference Point (DEA-IMRP) approach was recently developed to support integrated performance assessment and target setting for consistent management control and planning. To conduct the Integrated Efficiency and Trade-off (IET) analyses using the DEA-IMRP approach, it is important to understand the characteristics of the efficiency frontier and interactive trade-off analysis process. This paper provides a method for generation efficient frontier and analyzing data envelopes a new case for integrated efficiency and trade-off analysis with multiple input and multiple output DEA models using the DEA-IMRP approach.

Keywords:

Data envelopment analysis , Multi objective linear programming , Minimax method , Efficient frontier