Using Genetic Algorithms for Maximizing Technical Efficiency in Data Envelopment Analysis

Abstract

Data Envelopment Analysis (DEA) is a non-parametric technique for estimating the technical efficiency of a set of Decision Making Units (DMUs) from a database consisting of inputs and outputs. This paper studies DEA models based on maximizing technical efficiency, which aim to determine the least distance from the evaluated DMU to the production frontier. Usually, these models have been solved through unsatisfactory methods used for combinatorial NP-hard problems. Here, the problem is approached by metaheuristic techniques and the solutions are compared with those of the methodology based on the determination of all the facets of the frontier in DEA. The use of metaheuristics provides solutions close to the optimum with low execution time.