Ranking ranges, performance maverick and diversity for decision-making units with interval cross-efficiency matrix

ABSTRACT

An alternative strategy in cross-efficiency evaluation is to take into consideration all the possible choices of data envelopment analysis weights that all decision-making units (DMUs) can make, thus eliminate the non-uniqueness issue of cross-efficiency scores, and also avoid the need of the decision maker’s preference in choosing aggressive or benevolent strategy among various alternative secondary goals. We are interested in this alternative strategy and continue investigating it. With the derived interval cross-efficiency matrix for all the DMUs, we determine cross-efficiency intervals, ranking ranges, performance maverick and diversity for each DMU, which could provide more insightful information in cross-efficiency evaluation for decision makers. Our developed cross-efficiency interval and ranking ranges are useful for assessing the stability of the cross-efficiency scores. Besides, our developed interval performance maverick and diversity extend previous study to consider all possible weights space, which make results more acceptable for supplier rationalisation. Two examples of data on 18 Chinese cities and 23 suppliers are presented for illustrations.

KEYWORDS:

• Data envelopment analysis
• interval cross-efficiency
• ranking ranges
• performance maverick
• performance diversity

Notes on contributors

Sheng Ang is an Associate Professor in the School of Management at University of Science and Technology of China. He received his Ph.D. degree from this university in 2015. His research interests include Multi-Criteria Decision Making and Organization Performance Measures.

Qingxian An is an Associate Professor in the School of Business at Central South University, Hunan, China. He received his Ph.D. degree from University of Science and Technology of China in 2014. His research areas include Decision Science and Management Science.

Min Yang is an Associate Professor in the School of Management, Hefei University of Technology, China. He received his Ph.D. degree from University of Science and Technology of China in 2014. His research areas include Decision Analysis and Data Envelopment Analysis.

Feng Yang is a Professor in the School of Management at University of Science and Technology of China. He received his Ph.D. degree from this university in 2006. His research interests include Decision Science, Supply Chain and Operations Management, and Dada Analytics.

ORCID

Qingxian An http://orcid.org/0000-0002-6105-1675

Additional information

Funding

This work was supported by National Natural Science Foundation of China [grant numbers 71601173, 71501189, 71601067, 71631006, 71790615, 71631008], the Fundamental Research Funds for the Central Universities, Natural Science Foundation of Hunan Province [grant number 2017JJ3397], and the open project of “Mobile Health” Ministry of Education-China Mobile Joint Laboratory of Central South University.