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An enumeration algorithm for integer-valued data envelopment analysis

Alirezaee, Sani

International Transactions in Operational Research4 Aug 2011

NobleIDNI1P12W32R63S99DOI10.1111/j.1475-3995.2011.00822.x

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Data envelopment analysis (DEA) models assume real-valued inputs and outputs, but on many occasions, some inputs and/or outputs can only take integer values. In these cases, using DEA models can result in misleading efficiency assessments and inaccurate performance targets. In this paper, we propose an enumeration algorithm for computing efficiency scores and performance targets of decision-making units with integer value inputs/outputs. In the presented algorithm, we do not use any of the mixed integer linear programming (MILP) models that are used in previous studies. We show that the result of our algorithm and that of the MILP model presented in this context is the same. We also generalize our algorithm for different types of returns to scale as well as for the hybrid setting with real-valued data.

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