Data Envelopment Analysis(DEA) using Length Rate-based Efficiency Measurement

Abstract

This paper proposes length rate measurement for relative efficiency that is a core of data envelopment analysis(DEA). It has been said that the linear programming(LP) is a unique method to get the relative efficiency. This method has drawback that applies fractional LP focusing on each DMU in turn. This paper draws bi-dimensional input-output relational graph and distinguishes between efficient and inefficient DMU. The relative efficiency of inefficient DUM is solve using length rate measurement. As a result of various experimental data, the LP shows mistake of application, but this method gets the correct relative efficiency at all times. Also, this method only gets the relative efficiency for only inefficient DMUs without efficient DUMs that already achieved 100% efficiency. This method solves the relative efficiency of inefficient DUM draws the line to efficient frontier and decides the reference set easily.