Using Compromise Programming to Estimate Value Efficiency in DEA with Interval Scale Data

Halme et al, proposed Value Efficiency (VE) analysis as an approach to incorporate preference information in DEA. In this paper, we purpose estimating VE scores for Decision Making Units (DMUs) that some of their data are Interval Scale (IS) and in particular with IS variables when each is a difference of two different variables (like sales etc.). We, the first, decompose each IS variable into two Ratio Scale (RS) variables and then utilizing from a compromise solution approach generate Common Set of Weights (CSW) for the decomposed input/output variables. For measuring VE scores by aid Decision Maker (DM) searching the Most Preferred Solution (MPS) and then we will introduce an MOLP problem for generating input/output weights. Finally, VE scores are computed by comparing the inefficient units to units having the same value as the MPS.