Browse > Article

The Efficiency Analysis for DMU Using the Integration Method of DEA and AHP  

Kim, Tae-Sung (Department of Industrial & Systems Engineering, Kumoh National Institute of Technology)
Cho, Nam-Wook (Department of Industrial and Information Systems Engineering, Seoul National University of Technology)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.29, no.2, 2006 , pp. 1-6 More about this Journal
Abstract
This study proposes a new approach which combines Data Envelopment Analysis(DEA) and the Analytic Hierarchy Process(AHP) techniques to effectively evaluate Decision Making Units(DMUs). While DEA evaluates a quantitative data set, employs linear programming to obtain input and output weights and ranks the performance of DMUs, AHP evaluates the qualitative data retrieved from expert opinions and other managerial information in specifying weights. The objective of this research is to design a decision support process for managers to incorporate positive aspects of DEA's absolute numerical evaluations and AHP's human preference structure values. It is believed that a pragmatic manager will be more receptive to the results that include subjective opinions incorporated into the evaluation of the efficiency of each DMU efficiency. The WPDEA method provides better discrimination than the DEA method by reducing the number of efficient units.
Keywords
Data Envelopment Analysis; Analytic Hierarchy Process; Priority Weight; Discrimination; Efficiency;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Giokas, D., 'Bank Branch Operating Efficiency: A Comparative Application of DEA and the Loglinear Model,' OMEGA, 19(6) : 549-557, 1991   DOI   ScienceOn
2 Parkan, C., Wang, L.-F., and Wu, M.-L., 'Decision making under partial probability information using pair-wise comparisons,' European Journal of Operational Research, 112 : 220-235, 1999   DOI   ScienceOn
3 Saaty, T. L., 'An eigenvalue allocation model for prioritization and planning,' Energy Management and Policy Center, University of Pennsylvania, 1972
4 Saaty, T. L. and Bennett, J. P., 'A theory of analytic hierarchies applied to political candidacy,' Behavioral Science, 22 : 237-245, 1977   DOI   ScienceOn
5 Sinuany-Stern, Z., S.-S., A. Mehrez, and Y. Hadad, 'An AHP/DEA methodology for ranking decision making units,' International Transactions in Operational Research, 7 : 109-124, 2000   DOI
6 Yang, T. and Kuo, C., 'A hierarchical AHP/DEA methodology for facilities layout design problem,' European Journal of Operational Research, 147 : 128-136, 2003   DOI   ScienceOn
7 Zhu, J., 'Data envelopment analysis vs. principal component analysis: An illustrative study of economic performance of Chinese cities,' European Journal of Operational Research, 111 : 50-61, 1998   DOI   ScienceOn
8 Charnes, A. and W. W. Cooper, 'The non-archimedean CCR ratio for efficiency analysis: a rejoinder to Boyd and Fare,' European Journal of Operational Research, 15(3) : 333-334, 1984   DOI   ScienceOn
9 Saaty, T. L., Vargas, L. G., and Wendell, R. E., 'Assessing attribute weights by ratios,' Omega, 11 (1) : 9-12, 1983   DOI   ScienceOn
10 Guh, Y.- Y., 'Introduction to a new weighting method - Hierarchy consistency analysis,' European Journal of Operational Research, 102 : 215-226, 1997   DOI   ScienceOn
11 Zahedi, F., 'The analytic hierarchy process - A survey of the method and its applications,' Interfaces, 16 : 96-108, 1986
12 Schmidt, P., 'Frontier Production Functions,' Econometric Review, 4(2) : 289-328, 1985   DOI   ScienceOn
13 Saaty, T. L., The Analytic Hierarchy Process, McGrawHill, New York, 1980
14 Charnes, A., Cooper, W. W. et al., 'Measuring the efficiency of decision making units,' European Journal of Operational Research, 2(6) : 429-444, 1978   DOI   ScienceOn