Finding targets with ratio data based on value efficiency

Abstract

In many organizations, ratio data are always available and are considered as a criterion for decision-making. In this case, evaluating decision making units (DMUs) with ratio data and finding targets can be of great importance. Therefore, in the present article, a method is proposed for finding the targets of decision making units employing ratio-based DEA (DEA-R) models and using value efficiency. Units with the most preferred solution (MPS) have a crucial role in finding the targets of decision making units. Thus, utilizing value efficiency by choosing MPS according to the management’s idea and DEA-R models presents a new target for ratio data.In this paper, two different ideas based on the Max-Min model are studied for 20 tourism companies. In the end, the targets of decision making units based on ratio data are provided.