Adaptations to Leveled-DEA: A Technique for Non-homogeneous DMU Comparison

Naveen Tiruvengadam, Armando Elizondo-Noriega, David Guemes-Castorena, Sonia Valeria Aviles-Sacoto

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Leveled-Data Envelopment Analysis (L-DEA) is an adaptation of traditional Data Envelopment Analysis (DEA) in that it affords a limited comparison of heterogeneous Decision-Making Units (DMUs). In other words, while traditional DEA is intended for comparison and benchmarking of homogeneous DMUs (e.g. comparing hospitals only against other hospitals), LDEA allows for a rather narrow-in-scope comparison of DMUs across industries (hospitals against banks). In theory, L-DEA affords technology managers the ability to build external context against which to evaluate internal efficiencies. The L-DEA method as originally proposed was computed using a parametric method that was computationally slow. This paper provides an applied computational alternative that remains true to mathematics undergirding L-DEA whilst speeding up its computation considerably. In addition, and importantly, L-DEA's ability to remain functional with adaptations and perform against another dataset are both evaluated, in order to explore its capacity for further use.

Original languageEnglish
Title of host publicationPICMET 2023 - Portland International Conference on Management of Engineering and Technology
Subtitle of host publicationManaging Technology, Engineering and Manufacturing for a Sustainable World, Proceedings
EditorsDundar F. Kocaoglu, Timothy R. Anderson, Dilek Cetindamar Kozanoglu, Kiyoshi Niwa, Harm-Jan Steenhuis
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781890843434
DOIs
StatePublished - 2023
Event2023 Portland International Conference on Management of Engineering and Technology, PICMET 2023 - Monterrey, Mexico
Duration: 23 Jul 202327 Jul 2023

Publication series

Name2023 Portland International Conference on Management of Engineering and Technology (PICMET)

Conference

Conference2023 Portland International Conference on Management of Engineering and Technology, PICMET 2023
Country/TerritoryMexico
CityMonterrey
Period23/07/2327/07/23

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