EFFICIENCY MEASURES FOR VRM MODELS DEALING WITH NEGATIVE DATA IN DEA

Authors

Shiue-Jen Tung, Department of Shipping and Transportation Management, National Taiwan Ocean University, Keelung, Taiwan, R.O.C.
Guo-Ya Gan, College of Auditing and Evaluation, Nanjing Audit University, Nanjing, China.
Wen-Li Chyr, Department of Information Management, Ming Chuan University, Taipei, Taiwan, R.O.C.Follow
Hsuan-Shih Lee, Department of Shipping and Transportation Management, National Taiwan Ocean University, Keelung, Taiwan, R.O.C. Department of Information Management, Ming Chuan University, Taipei, Taiwan, R.O.C

Abstract

This paper explores the properties of the efficiency measures of the variant of radial measure (VRM) which is capable of dealing with negative data in DEA. We found that the inputoriented efficiency measure for VRM might be negative and the range of the output-oriented efficiency measure for VRM might be limited to [0.5, 1]. To circumvent these two situations, we propose the new efficiency measures which prevent the inputoriented efficiency from becoming negative and the outputoriented efficiency from being limited to [0.5, 1].

Recommended Citation

Tung, Shiue-Jen; Gan, Guo-Ya; Chyr, Wen-Li; and Lee, Hsuan-Shih (2018) "EFFICIENCY MEASURES FOR VRM MODELS DEALING WITH NEGATIVE DATA IN DEA," Journal of Marine Science and Technology: Vol. 26: Iss. 2, Article 5.
DOI: 10.6119/JMST.2018.04_(2).0005
Available at: https://jmstt.ntou.edu.tw/journal/vol26/iss2/5