Efficiency Measurement of NDEA with Interval Data

Abstract.Data envelopment analysis (DEA) is a non-parametric technique for evaluation of relative efficiency of decision making units described by multiple inputs and outputs. It is based on solving linear programming problems. Since 1978 when basic DEA model was intro- duced many its modications were formulated. Among them are two or multi-stage models with serial or parallel structure often called network DEA models that are widely discussed in professional community in the last years. The exact known inputs and outputs are re- quired in these DEA models. However, in the real world, the concern is systems with interval (bounded) data. When we incorporate such interval data into multi-stage DEA models, the resulting DEA model becomes a non-linear programming problem. In this study, we suggest an approach to measure the efficiency of series and parallel systems with interval data that preserves the linearity of DEA model. Also, the interval DEA models are proposed to measure the lower and upper bounds of the efficiency of each DMU with interval data.