A Method for Selection of Input-Output Factors in DEA

DEA에서 투입.산출 요소 선택 방법

  • Lim, Sung-Mook (Division of Business Administration, College of Business and Economics, Korea University)
  • 임성묵 (고려대학교 경상대학 경영학부)
  • Received : 2008.02.12
  • Accepted : 2008.12.03
  • Published : 2009.03.01

Abstract

We propose a method for selection of input-output factors in DEA. It is designed to select better combinations of input-output factors that are well suited for evaluating substantial performance of DMUs. Several selected DEA models with different input-output factors combinations are evaluated, and the relationship between the computed efficiency scores and a single performance criterion of DMUs is investigated using decision tree. Based on the results of decision tree analysis, a relatively better DEA model can be chosen, which is expected to well represent the true performance of DMUs. We illustrate the effectiveness of the proposed method by applying it to the efficiency evaluation of 101 listed companies in steel and metal industry.

Keywords

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