An Improvement of DEA Cross-Efficiency Aggregation Based on BWM-TOPSIS

Abstract

Data Envelopment Analysis (DEA) cross-efficiency has been used to replace the self-evaluation system, which requires decision-makers to rank a series of decision-making units (DMUs) according to cross-efficiency scores, and finally determine the order of each DMU, so as to provide decision-making basis for decision-makers. However, this method has certain deficiencies: one is that the cross-efficiency value is not unique; the other one is that the cross-efficiency evaluation uses the same weight to aggregate cross-efficiency. In this paper, Technique for order performance by similarity to ideal solution (TOPSIS) and The Best Worst Method (BWM) methods are used to aggregate the aggressive cross-efficiency values and benevolent cross-efficiency values. Besides, the high consistency of the BWM method improves the shortcomings of the TOPSIS method. The result of TOPSIS method is not necessarily close to the ideal solution, and far away from the negative ideal solution. At the same time, the distance measured by the TOPSIS method replaces the preference of the BWM method, which makes BWM method more objective. Finally, a numerical example is given to verify the feasibility and effectiveness of the method.

Keywords

• Cross-efficiency aggregation
• data envelopment analysis
• best worst method
• TOPSIS