Classifying and ranking DMUs of different efficiency levels

Abstract

In this paper, we propose an alternative efficiency measurement to improve the insufficiency in Data Envelopment Analysis (DEA), provide a precise classification of efficient Decision Making Units (DMUs) and deliver more inner information about the evaluated DMUs, based on a new DEA non-traditional efficiency measurement which projects out DMUs at every input/output direction, one for each. Moreover, a procedure of three steps is given to differentiate the strongly efficient DMUs and weakly efficient DMUs among all the efficient reference sets. Finally, a numerical illustration is presented in this paper to show the potential advantages of the proposed DEA non-traditional efficiency measurement.