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Ranking decision-making units using common weights in DEA
Institution:1. Department of Mathematics, Faculty of Basic Sciences, University of Qom, Iran;2. Department of Mathematics, Faculty of Mathematical Sciences, Shahid Beheshti University, General Campus, Tehran, Iran;3. Department of Mathematics, Faculty of Mathematical Science & Computer, Kharazmi University, Karaj, Iran;4. Faculty of Basic Sciences, Islamic Azad University, Parand Branch, Iran
Abstract:Data envelopment analysis (DEA) is a linear programming technique that is used to measure the relative efficiency of decision-making units (DMUs). Liu et al. (2008) 13] used common weights analysis (CWA) methodology to generate a CSW using linear programming. They classified the DMUs as CWA-efficient and CWA-inefficient DMUs and ranked the DMUs using CWA-ranking rules. The aim of this study is to show that the criteria used by Liu et al. are not theoretically strong enough to discriminate among the CWA-efficient DMUs with equal efficiency. Moreover, there is no guarantee that their proposed model can select one optimal solution from the alternative components. The optimal solution is considered to be the only unique optimal solution. This study shows that the proposal by Liu et al. is not generally correct. The claims made by the authors against the theorem proposed by Liu et al. are fully supported using two counter examples.
Keywords:Data envelopment analysis (DEA)  Common set of weights (CSW)  Ranking
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