Sensitivity and Stability Radius in Data Envelopment Analysis

One important issue in DEA which has been studied by many DEA researchers is the sensitivity analysis of a specic DMUo, the unit under evaluation. Moreover, we know that in most models of DEA, the best DMUs have the effeciency score of unity. In some realistic situations, the performance of some ineffecient DMUs is similar to that of effecient ones. In this paper, we define a new effeciency category, namely ;quasi efficient;. Then, we develop a procedure for performing a sensitivity analysis of the effecient and quasi-effecient decision making units. The procedure yields an exact ;stability radius; within which data variations will not alter a DMU;s classification from effecient or quasi-effecient to ineffecient status (or vice versa)