Journal of Productivity Analysis

, Volume 10, Issue 2, pp 177–198

Hierarchies and Groups in DEA

  • Wade D. Cook
  • Dan Chai
  • John Doyle
  • Rodney Green
Article

DOI: 10.1023/A:1018625424184

Cite this article as:
Cook, W.D., Chai, D., Doyle, J. et al. Journal of Productivity Analysis (1998) 10: 177. doi:10.1023/A:1018625424184

Abstract

Conventional applications of data envelopment analysis (DEA) presume the existence of a set of similar decision making units, wherein each unit is evaluated relative to other members of the set. Often, however, the DMUs fall naturally into groupings, giving rise first to the problem of how to view the groups themselves as DMUs, and second to the issue of how to deal with several different ratings for any given DMU when groupings can be formed in different ways. In the present paper we introduce the concept of hierarchical DEA, where efficiency can be viewed at various levels. We provide a means for adjusting the ratings of DMUs at one level to account for the ratings received by the groups (into which these DMUs fall) at a higher level. We also develop models for aggregating different ratings for a DMU arising from different possible groupings. An application of these models to a set of power plants is given.

DEAgrouphierarchyadjusted ratingslevelspower plants

Copyright information

© Kluwer Academic Publishers 1998

Authors and Affiliations

  • Wade D. Cook
    • 1
  • Dan Chai
    • 2
  • John Doyle
    • 3
  • Rodney Green
    • 3
  1. 1.Schulich School of BusinessYork UniversityTorontoCanada
  2. 2.Ontario Hydro Research DivisionTorontoCanada
  3. 3.School of ManagementUniversity of BathUK