Ranking Decision Making Units with Stochastic Data by Using Coefficient of Variation

• Published in: Mathematical and Computational Applications Vol. 15; no. 1; pp. 148 - 155
• Main Authors: Lotfi, F., Nematollahi, N., Behzadi, M.H., Mirbolouki, M.
• Format: Journal Article
• Language: English
• Published: Association for Scientific Research 01-04-2010
• Subjects: coefficient of variation; Data envelopment analysis; decision making; Derecelendirme; Değişim katsayısı; grading[ranking]; İşletme Mühendisliği; Karar verme; Management Engineering; Matematik; Mathematics; Veri zarflama analizi
• ISSN: 2297-8747; 1300-686X; 2297-8747
• DOI: 10.3390/mca15010148

Data Envelopment Analysis (DEA) is a non-parametric technique which is
based on mathematical programming for evaluating the efficiency of a set of Decision
Making Units (DMUs). Throughout applications, managers encounter with stochastic
data and the necessity of having a method that is able to evaluate efficiency and rank
efficient units has been under consideration. In this paper considering the concept of
coefficient of variation among efficient DMUs, two ranking methods has been
proposed. Within these ranking methods, a DMU will have a higher rank if it's
coefficient of variation be smaller. These methods are suitable when managers are able
to determine weights on coefficient of variations or on inputs and outputs. At the end we
applied these methods on a numerical example.