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Construction of rating function using DEA models

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Abstract

The paper shows that many simple rating functions constructed on the basis of the ratio analysis distort significantly the evaluation of the production units behavior. Opposite to the ratio analysis, the DEA approach investigate production units behaviour in the multidimentional space of indicators. In this paper, we compare the ration analysis and the DEA approach using properties of the mappings of the multidimentional sets, we also show that it is purposeful to construct rating functions on the basis of efficiency scores computed in DEA models.

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Correspondence to V. E. Krivonozhko.

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Published in Russian in Doklady Akademii Nauk, 2009, Vol. 426, No. 5, pp. 608–612.

The article was translated by the authors.

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Krivonozhko, V.E., Piskunov, A.A. & Lychev, A.V. Construction of rating function using DEA models. Dokl. Math. 79, 440–444 (2009). https://doi.org/10.1134/S1064562409030387

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  • DOI: https://doi.org/10.1134/S1064562409030387

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