ALGORITHMIC STRATEGY FOR ASSURANCE REGION ANALYSIS IN DEA

Abstract

An algorithmic strategy is proposed for use with the assurance region (AR) approach in data envelopment analysis (DEA). The strategy addressed characterizes and classifies all decision making units (DMUs) into several subsets, using the revised simplex method of linear programming. Then, each DMU subset is solved by a different algorithm. Experimental studies consisting of randomly generated data sets have confirmed that the proposed algorithm outperforms the conventional DEA use of the revised simplex method. An important feature related to the DEA/AR algorithm is that it can deal effectively with large data sets