Sustainability and Social Justice

Evaluating Effective Performance Using Ordered Weighted Averaging and Data Envelopment Analysis Optimization

Document Type

Article

Abstract

When comparing and evaluating performance, decision-makers are concerned with providing a range of effective, efficient, and fair measures that can yield representative relative rankings for the units being evaluated. In this chapter, we apply three multicriteria benchmarking modeling techniques - weighted linear combination, data envelopment analysis (DEA), and ordered weighted average (OWA) - to an example dataset to provide a quantitative assessment of performance. Evaluation of the results demonstrates that each of these techniques has relative strengths and shortcomings. To take advantage of the relative strengths, and avoid some of the shortcomings that we observed, we develop and assess a promising new methodological approach, the order rated effectiveness (ORE) model. ORE uses the OWA unit ratings within a DEA optimization framework to provide an overall relative performance assessment.

Publication Title

Applications of Management Science

Publication Date

1-1-2020

Volume

20

First Page

207

Last Page

232

ISSN

0276-8976

DOI

10.1108/S0276-897620200000020017

Keywords

benchmarking, benchmarking, data envelopment analysis, multi-criteria evaluation, operational effectiveness, ordered weighted average, performance measurement

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