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Sensitivity and Stability Analysis in DEA: Some Recent Developments

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Abstract

This papersurveys recently developed analytical methods for studying thesensitivity of DEA results to variations in the data. The focusis on the stability of classification of DMUs (Decision MakingUnits) into efficient and inefficient performers. Early workon this topic concentrated on developing solution methods andalgorithms for conducting such analyses after it was noted thatstandard approaches for conducting sensitivity analyses in linearprogramming could not be used in DEA. However, some of the recentwork we cover has bypassed the need for such algorithms. Evolvingfrom early work that was confined to studying data variationsin only one input or output for only one DMU at a time, the newermethods described in this paper make it possible to determineranges within which all data may be varied for any DMU beforea reclassification from efficient to inefficient status (or vice versa) occurs. Other coverage involves recent extensionswhich include methods for determining ranges of data variationthat can be allowed when all data are varied simultaneously for all DMUs. An initial section delimits the topics to be covered.A final section suggests topics for further research.

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Authors and Affiliations

  1. Red McCombs School of Business, University of Texas at Austin, Austin, Texas, 78712-1174, USA

    W. W. Cooper

  2. Faculty of Management, McGill University, Montreal, Quebec, Canada

    Shanling Li

  3. National Science Foundation, 4201 Wilson Blvd., Arlington, Virginia, 22230, USA

    L. M. Seiford Ph.D.

  4. National Graduate Institute for Policy Studies, 2-2 Wakamatsu-cho, Shinjuku-ku, Tokyo, 162-8677, Japan

    Kaoru Tone

  5. Jones Graduate School of Management, Rice University, Houston, Texas, 77204-1892, USA

    R. M. Thrall

  6. Department of Management, Worcester Polytechnic Institute, Worcester, Massachusetts, 01609, USA

    J. Zhu

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Cooper, W.W., Li, S., Seiford, L.M. et al. Sensitivity and Stability Analysis in DEA: Some Recent Developments. Journal of Productivity Analysis 15, 217–246 (2001). https://doi.org/10.1023/A:1011128409257

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