A Multiple Criteria Decision Making Model Based on DEA/AR with AHP Preference Cone

In this paper, we proposed a multiple criteria DEA/AR (data envelopment analysis/assurance region) model with analytical hierarchy process (AHP) preference cone in multiple criteria decision making (MCDM) problems. The inputs and outputs of DMUs were extended to three types including cost- type, fixed-type and income-type, which formed multiple criteria DEA model. Benchmark DMU was established and its optimized weights values were calculated. To reflect the preference of decision maker, AHP method was utilized to build the preference cone. The combination of benchmark weights constraints and AHP preference cone ascertained AR. The method differs from the traditional one; it takes account of both objective and subjective sides. A numerical example illustrates the availability and efficiency of the hybrid model.