Improving DEA efficiency under constant sum of inputs/outputs and Common weights

Abstract

In Data Envelopment Analysis (DEA), one way of calculating efficiency is to use parameter weights common to all decision-making units (DMUs), since it is reasonable for similar DMUs to place similar weights on inputs and outputs. At the same time, in many situations, the total amount of input or output available to a set of DMUs is fixed. In this paper, we have formulated DEA models to calculate the best strategy for improving the efficiency of an inefficient DMU when the parameters of all DMUs are weighted with a common set of weights, and there is a constant sum of inputs/outputs constraint. Theoretical results have been illustrated with the help of a numerical example.