ABSTRACT
We present a novel approach to the inverse data envelopment analysis (DEA) process, based on the slacks-based measure (SBM) model in the presence of undesirable outputs. In the first step, we determine the minimum undesirable outputs levels that a decision-making unit (DMU) can produce, according to the level of inputs and desired outputs, based on weak disposability. We then introduce counterpart (hypothetical) units corresponding to each DMU. In the second step, we determine the optimal level of inputs and outputs for the newly created units, based on the SBM model in the presence of undesirable outputs. We present two new criteria models based on the SBM model, to compare the efficiency of the newly created unit in the inverse DEA process with the original unit. We demonstrate that the efficiency scores obtained from these two models are equal. Using the SBM-based inverse non-radial DEA process, we can use all inefficiency slacks related to all input and undesirable output components in the inverse non-radial DEA process to estimate inputs and outputs simultaneously.
Keywords:
Data Envelopment Analysis; inverse DEA; undesirable output; efficiency; non-radial DEA