A Step by Step Method to Improve the Performance of Decision Making Units

Mohammad Izadikhah


In this paper, we present the concept of context-dependent
DEA based on the FDH model by introducing the FDH-attractiveness
and FDH-progress for each DMU. By the presented method, not only
we can improve the performance of inefficient DMUs, but we can find
a target for improvement among the existing efficient DMUs. These
targets are observed DMUs and are not some virtual points on the
efficiency frontier. Also, the paper presents a step by step method to
improve the performance of DMUs by measuring FDH-attractiveness
and FDH-progress. One numerical example and a case study consists
of 20 Iranian bank branches are given for illustration.

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