Finding Targets in Non-Radial FDH Models: A Hybrid Technique Based on STEM and Extended Ratio Based Approach

Abstract

Performance evaluation using interactive methods and extended ratio-based approaches can be very important for some organizations. Free disposal hull models can be created if there is no concern for convexity, and using non-radial DEA models can simultaneously create more logical and practical situations for finding DMU targets. In this paper, a new hybrid technique based on the additive slack based method and enhanced Russel measure in variable return to scale technology has been proposed. The proposed technique can find decision making unit targets in non-radial free disposal hull models using the step method. Furthermore, the extended ratio-based approach in the proposed technique has been applied to find DMU targets of related non-radial free disposal hull models without solving any mathematical programming models. Finally, targets of Fars province pharmaceutical distributing companies were found by applying the proposed hybrid technique.

Keywords

• data envelopment analysis (DEA)
• additive slack based method
• non-radial free disposal hull (FDH)
• step method (STEM)
• ratio-based approach (RBA)