A new method for ranking non-extreme efficient units in data envelopment analysis

Data envelopment analysis (DEA) evaluates the performance of decision making units (DMUs). When DEA models are used to calculate efficiency of DMUs, a number of them may have the equal efficiency 1. In order to choose a winner among DEA efficient candidates, some methods have been proposed. But most of these methods are not able to rank non-extreme efficient DMUs. Since, the researches performed about ranking of non-extreme efficient units are very limited, incomplete and with some difficulties, we are going to develop a new method to rank these DMUs in this paper. Therefore, we suppose that DMU o is a non-extreme efficient under evaluating DMU. In continue, by using “Representation Theorem”, DMU o can be represented as a convex combination of extreme efficient DMUs. So, we expect the performance of DMU o be similar to the performance of convex combination of these extreme efficient DMUs. Consequently, the ranking score of DMU o is calculated as a convex combination of ranking scores of these extreme efficient DMUs. So, the rank of this unit will be determined.