Abstract
Data Envelopment Analysis (DEA) assumes, in most cases, that all inputs and outputs are controlled by the Decision Making Unit (DMU). Inputs and/or outputs that do not conform to this assumption are denoted in DEA asnon-discretionary (ND) factors. Banker and Morey [1986] formulated several variants of DEA models which incorporated ND with ordinary factors. This article extends the Banker and Morey approach for treating nondiscretionary factors in two ways. First, the model is extended to allow for thesimultaneous presence of ND factors in both the input and the output sets. Second, a generalization is offered which, for the first time, enables a quantitative evaluation ofpartially controlled factors. A numerical example is given to illustrate the different models.
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The editor for this paper was Wade D. Cook.
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Golany, B., Roll, Y. Some extensions of techniques to handle non-discretionary factors in data envelopment analysis. J Prod Anal 4, 419–432 (1993). https://doi.org/10.1007/BF01073549
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DOI: https://doi.org/10.1007/BF01073549