A Robust Data Envelopment Analysis Method with Bounded Data for Ranking Operations Strategies

Abstract

This paper introduces a new robust data envelopment analysis RDEA approach for analyzing and ranking the organizations' operations strategies. In the proposed RDEA method, pessimistic and optimistic efficiencies of decision making units DMUs obtained from the robust counterpart of the envelopment form and the optimistic counterpart of the multiplier form of DEA are introduced. The inputs and outputs data are assumed to be bounded data interval numbers in the proposed models. A case study in the cement industry is presented to demonstrate the applicability of the proposed RDEA approach. The results obtained from the authors' proposed RDEA approach is more robust and their method provides a more complete ranking of the DMUs compared to conventional Likert-based DEA model.