Malmquist Productivity Index Based on Means of Weights for Ranking of Decision Making Units in Data Envelopment Analysis

Document Type : Research Paper

Authors

1 The “khaje Nasir Toosi” University of Technology, Faculty of Electrical Engineering, Tehran, Iran

2 Islamic Azad University, Faculty of Engineering, Sari Branch, Mazandaran, Iran,

Abstract

The Malmquist Index is the prominent Index for measuring the productivity change of Decision Making Units (DMUs) in multiple time periods that use Data Envelopment Analysis (DEA) models with Variable Return to Scale (VRS) and Constant Return to Scale (CRS) technology. One of the drawbacks of DEA is the problem of lack of discrimination among efficient DMUs and hence yielding many numbers of DMUs as efficient. The main purpose of this paper is to overcome this inability. In this paper, we compute the Malmquist Index based on means of weights evaluation, and by using this method we can rank DMUs by logical criteria. For illustration numerical example is given.

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