A Method for Ranking Decision Making Units with Stochastic Data

Data Envelopment Analysis (DEA) is a data-oriented performance evaluation method which has treated data as being deterministic. In real world applications managers may encounter the data which are not recognized deterministically. In this paper a model for ranking stochastic efficient Decision Making Units (DMUs) have been presented. The advantage of this new method is that the stochastic ssence of inputoutput variables has been taken into account. Using numerical example, we will demonstrate how to use the result.

Keywords:

Data envelopment analysis , Standard normal distribution , Ranking , Quadratic programming