A DEA based procedure for the selection of subgroups |
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Affiliation: | 1. Department of Economics, Pablo de Olavide University, Ctra. de Utrera, km 1, 41013 Seville, Spain;2. Hynergreen Technologies, S.A., Campus Palmas Altas, C/Energía Solar, 1, 41014 Sevilla, Spain |
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Abstract: | Data Envelopment Analysis (DEA) is a nonparametric technique originally conceived for efficiency analysis of a set of units. The main characteristic of DEA based procedures is endogenous determination of weighting vectors, i.e., the weighting vectors are determined as variables of the model. Nevertheless, DEA’s applications have vastly exceeded its original target. In this paper, a DEA based model for the selection of a subgroup of alternatives or units is proposed. Considering a set of alternatives, the procedure seeks to determine the group that maximizes overall efficiency. The proposed model is characterized by free selection of weights and allows the inclusion of additional information, such as agent’s preferences in terms of relative importance of the variables under consideration or interactions between alternatives. The solution is achieved by computing a mixed-integer linear programming model. Finally, the proposed model is applied to plan the deployment of filling stations in the province of Seville (Spain). |
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Keywords: | DEA Group selection Mixed-integer linear programming |
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