A comparative analysis of DEA as a discrete alternative multiple criteria decision tool

The results of this study show that incorporating decision maker valuejudgments into the DEA approaches provided comparable results to those found by the ‘traditional’ MCDM ap-proaches.

Abstract

The application of Data Envelopment Analysis (DEA) as a discrete alternative multiple criteria decision making (MCDM) tool has been gaining more attention in the literature. In this literature, DEA has been applied as an MCDM tool and compared analytically to other MCDM models and their structures, especially those that are based on multiple objective linear programming approaches. In this paper, we provide an empirical evaluation of various DEA ranking approaches and MCDM techniques, which include outranking and multiattribute utility techniques, using case study information. A solid waste management system case study that has been published by Hokkanen and Salminen (1997a) provide the data and results for this comparison. The results of this study show that incorporating decision maker value judgments into the DEA approaches provided comparable results to those found by the `traditional' MCDM approaches. The DEA approaches seem to be advantageous to users by requiring less information from decision makers and analysts, and providing ranked alternative valuations that may be useful for some decision makers.