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Stochastic Multiplicative DEA Model for Measuring the Efficiency and Ranking of DMUs under VRS Technology
 
  • P-ISSN 0974-6846 E-ISSN 0974-5645

Indian Journal of Science and Technology

Article

Indian Journal of Science and Technology

Year: 2014, Volume: 7, Issue: 11, Pages: 1765–1773

Original Article

Stochastic Multiplicative DEA Model for Measuring the Efficiency and Ranking of DMUs under VRS Technology

Abstract

One class of models introduced in data envelopment analysis is called multiplicative model. In this paper, the extension of multiplicative data envelopment analysis(MDEA) model under variable return to scale(VRS) technology in the presence of stochastic data was focused on. The log-normal distribution is a family of probability density functions that is frequently used in practical situations. Therefore, in the present study, a stochastic MDEA model under VRS technology was proposed for measuring the stochastic a - efficiency of decision making units (DMUs) with inputs and outputs having log-normal distributions. Moreover, stochastic super-efficiency model was proposed for ranking stochastic a - efficient DMUs in stochastic MDEA model. Finally, an example of the system reliability was presented for 12 different brands of computers to demonstrate our proposed modeling idea and its efficiency. 

Keywords: Log-normal Distribution, Multiplicative Data Envelopment Analysis(MDEA), Stochastic MDEA, Stochastic a - efficiency, Stochastic Super-efficiency, System Reliability

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