Handling negative data in slacks-based measure data envelopment analysis models

Kaoru Tone, Tsung Sheng Chang*, Chen Hui Wu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

This paper proposes slacks-based measure (SBM) data envelopment analysis (DEA) models that handle negative data. Unlike existing negative data allowable DEA models, the proposed SBM DEA models are consistent with ordinary SBM models and units invariant, they handle various types of returns to scale, and they avoid division by zero. These new SBM DEA models transform original negative inputs and outputs into positive counterparts based on a newly defined “base point”. Hence, these models are referred to as the BP-SBM DEA models. In addition to the basic BP-SBM DEA models, this research further develops data-oriented and application-oriented BP-SBM DEA-type models for different application problems involving negative data. Numerical examples are provided to illustrate various aspects and implementation details of these models.

Original languageEnglish
Pages (from-to)926-935
Number of pages10
JournalEuropean Journal of Operational Research
Volume282
Issue number3
DOIs
StateAccepted/In press - 1 Jan 2019

Keywords

  • BP-SBM
  • Data envelopment analysis
  • Division by zero irrationality
  • Negative data
  • Slacks-based measure

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