RANKING DMUS ON THE BENCHMARK LINE WITH EQUAL SHADOW PRICES

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  • Z. Molaee1,
  • A. Zandi1,
  1. Azad University, Central Tehran Branch Iran, Islamic Republic of Department of Mathematics

Revised: 12-04-2016

Accepted: 12-04-2016

Published in Issue 22-12-2011

How to Cite

Molaee, Z., & Zandi, A. (2011). RANKING DMUS ON THE BENCHMARK LINE WITH EQUAL SHADOW PRICES. International Journal of Mathematical Modelling & Computations, 1(1), 27-33. https://oiccpress.com/ijm2c/article/view/11032

Abstract

Data envelopment analysis (DEA) with considering the best condition for each decision making unit (DMU) assesses the relative efficiency for it and divides a homogenous group of DMUs in to two categories: efficient and inefficient, but traditional DEA models can not rank efficient DMUs. Although some models were introduced for ranking efficient DMUs, Franklin Lio & Hsuan peng (2008), proposed a common weights analysis (CWA) approach for ranking them. These DMUs are ranked according to the efficiency score weighted by the common set of weights and shadow prices. This study shows there are some cases that shadow prices of efficient DMUs are equal, hence this method is not applicable for ranking them. Next, we propose a new method for ranking units with equal shadow prices.
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