Sensitivity and Stability Analysis in DEA: Some Recent Developments

Authors: Cooper W.W.¹; Li S.²; Seiford L.M.²; Ph.D.³; Tone K.⁴; Thrall R.M.⁵; Zhu J.⁶

Source: Journal of Productivity Analysis, Volume 15, Number 3, May 2001 , pp. 217-246(30)

Publisher: Springer

Abstract:

This paper surveys recently developed analytical methods for studying the sensitivity of DEA results to variations in the data. The focus is on the stability of classification of DMUs (Decision Making Units) into efficient and inefficient performers. Early work on this topic concentrated on developing solution methods and algorithms for conducting such analyses after it was noted that standard approaches for conducting sensitivity analyses in linear programming could not be used in DEA. However, some of the recent work we cover has bypassed the need for such algorithms. Evolving from early work that was confined to studying data variations in only one input or output for only one DMU at a time, the newer methods described in this paper make it possible to determine ranges within which all data may be varied for any DMU before a reclassification from efficient to inefficient status (or vice versa) occurs. Other coverage involves recent extensions which include methods for determining ranges of data variation that can be allowed when all data are varied simultaneously for all DMUs. An initial section delimits the topics to be covered. A final section suggests topics for further research.

Keywords: Efficiency; Data Variations; Sensitivity; Stability

Language: English

Document Type: Regular paper

Affiliations: 1: Red McCombs School of Business, University of Texas at Austin, Austin, Texas 78712-1174, USA 2: Faculty of Management, McGill University, Montreal, Quebec, Canada 3: National Science Foundation, 4201 Wilson Blvd., Arlington, Virginia 22230, USA 4: National Graduate Institute for Policy Studies, 2-2 Wakamatsu-cho, Shinjuku-ku, Tokyo 162-8677, Japan 5: Jones Graduate School of Management, Rice University, Houston, Texas 77204-1892, USA 6: Department of Management, Worcester Polytechnic Institute, Worcester, Massachusetts, 01609, USA

Publication date: 2001-05-01

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• By this author: Cooper W.W. ;  Li S. ;  Seiford L.M. ;  Ph.D. ;  Tone K. ;  Thrall R.M. ;  Zhu J.

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