Effect of Returns to Scale in Different DEA Models on Evaluating Efficiency by Considering Uncertainty in Data: Application from Hospitals
Abstract
One of the most essential methods for assessing the efficiency of Decision-Making Units (DMUs) is Data Envelopment Analysis (DEA). This method is nonparametric, and one of the most critical issues is considering uncertain data in evaluating and ranking DMUs. Robust Data Envelopment Analysis (RDEA) is the approach for measuring the relative efficiency of DMUs by considering uncertain data. In this paper, we developed a RDEA on the Variable Returns to Scale (VRS) approaches and compared the results of RDEA based on the BCC model with RDEA based on the CCR model of DEA. By using Robust optimization, we wrote the RDEA. For the Robust optimization, two approaches are introduced: One is the Ben-Tal and Nemirovski approach, and the other is the Bertsimas et al. approach. In this paper, we used the Bertsimas et al. approach because this approach, unlike the Ben-Tal and Nemirovski approach, is a linear programming problem and is not hard to solve.
Keywords:
Data envelopment analysis, Robust optimization, Robust data envelopment analysis, Constant returns to scale, Variable returns to scaleReferences
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