INPROFORUM 2017

On the differences between DEA and selected MCDM methods
Markéta Dvořáková, Jana Klicnarová

Language: en
Last modified: 2018-04-10

Abstract


In many economic applications, it is necessary to compare some units, to choose the best one or to identify good ones. Many ways how to handle this problem exist. In this paper, we are interested in DEA and MCDM methods. Data envelopment analysis methods (DEA) are focused on productive efficiency of decision making units with respect to the values of their inputs and outputs. The aim of the DEA model is to identify a set of efficient and inefficient units. Multiple-criteria decision-making methods (MCDM) typically search for the “best“ alternative from a set of avaible alternatives or for a small group of “optimal”alternatives. However, in these problems the solution depends on decision-maker’s preferences. It is known inputs of DEA are in fact costs criteria and outputs are profits criteria. Hence, it seems the aims of these methods are very similar. The aim of this paper is to discuss if it is possible to compare results of DEA and MCDM methods.


Keywords


DEA; Multiple criteria decision making

Full Text: PDF