A Method for Ranking Data Envelopment Analysis Based on the Degree of Agreement

Abstract

One of the best methods of ranking the decision-making units (DMUs) is through cross-efficiency analysis in data envelopment analysis. Nevertheless, the various cross-efficiency evaluation models based on different views provide difference cross-efficiency rankings. The data that come out of the different point of views can be useful and cannot be disregarded. In this paper we are espousing a new composite approach towards ranking DMUs through verifying the Shannon entropy of the cross-efficiency scores that will be acquired through the lens of both perspectives of satisfaction and consensus. We also embrace grey incidence analysis to make a comparative evaluation of ranking of various cross-efficiency models. The computational process of applying Shannon entropy and grey incidence analysis is depicted on an illustration to provide the composite ranking outcome and compare to any other cross-efficiency.