Integrating DEA and Group AHP for Efficiency Evaluation and Identification of Most Efficient DMU

Document Type: Research Paper

Authors

1 Department of industrial engineering, Urmia university of technology, Urmia, Iran

2 Faculty of Industrial and Mechanical Engineering, Qazvin branch, Islamic Azad University, Qazvin, Iran

Abstract

Selection problems which contain many criteria are important and complex problems and different approaches have been proposed to fulfill this job. The Analytic Hierarchy Process (AHP) can be very useful in reaching a likely result which can satisfy the subjective opinion of a decision maker. On the other hand, the Data Envelopment Analysis (DEA) has been a popular method for measuring relative efficiency of decision making units (DMUs) and ranking them objectively with the quantitative data. In this paper, a Three-step procedure based on both DEA and AHP is formulated and applied to a case study. The procedure maintains the philosophy inherent in DEA by allowing each DMU to generate its own vector of weights. These vectors of weights are used to construct a group of pairwise comparison matrices which are perfectly consistent. Then, we utilize group AHP method to produce the best common weights which are compatible with the DMUs judgments. Using the proposed approach can give precise evaluation, combining the subjective opinion with the objective data of the relevant factors. The applicability of the proposed integrated model is illustrated using a real data set of a case study, which consists of 19 facility layout alternatives

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