A lexicographic radial projection onto the efficient frontier in Data Envelopment Analysis

Pekka J. Korhonen, Akram Dehnokhalaji, Nasim Nasrabadi

Research output: Contribution to journalArticle

Abstract

A well-known problem of using radial projection in Data Envelopment Analysis (DEA) is that the solution may be only weakly efficient—not necessarily efficient. Our aim is to overcome this drawback by developing a lexicographic approach to projecting radially any unit onto the efficient frontier—not only onto the weakly efficient frontier. The approach is based on the idea to apply radial projection by stepwise dropping component(s) from the radial projection vector until the efficient frontier is reached. The approach has two main differences compared to the traditional approach: (1) the target unit on the efficient frontier is found in the spirit of radial projection and (2) the (in)efficiency score is not necessarily the same for all controllable variables. A numerical illustration and an empirical example are used to demonstrate the approach.
Original languageEnglish
Pages (from-to)1005-1012
JournalEuropean Journal of Operational Research
Volume265
Issue number3
Early online date1 Sep 2017
DOIs
Publication statusPublished - 16 Mar 2018

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Efficient Frontier
Data envelopment analysis
Data Envelopment Analysis
Projection
Unit
Target
Efficient frontier
Demonstrate

Cite this

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A lexicographic radial projection onto the efficient frontier in Data Envelopment Analysis. / Korhonen, Pekka J.; Dehnokhalaji, Akram; Nasrabadi, Nasim.

In: European Journal of Operational Research, Vol. 265, No. 3, 16.03.2018, p. 1005-1012.

Research output: Contribution to journalArticle

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