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Research Article Open access CC BY 4.0

A Slacks-based Measure in the Presence of Ratio Variable with Convexity Consideration

Farzaneh Ghaffari, Morteza Haghiri

Journal of Advances in Mathematics and Computer Science · pp. 53–62 · Published 20 Feb 2020

10.9734/jamcs/2020/v35i130239

Abstract

The nature of input-output relationships in general and ratio data in particular has important consequences for practitioners when the data envelopment analysis method is used to  measure technical efficiency of decision making units or production units. Since the data envelopment analysis approach was introduced several studies tried to develop the model from different aspects including when the model deals with ratio data. To date, none of these studies was able to address the aforementioned problem properly and as a result most of them suffered from a lack of clarity in the presence of input-and-output ratios. This study proposes a slacks-based measure of efficiency in the presence of ratio variable. Our approach deals directly with the input excess and the output shortfalls of the decision making units’ concerns, and as a result, improved measuring efficiency scores.

Data envelopment analysis slack-based-measure slacks convexity.

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