Making an ideal decision-making unit using virtual network data envelopment analysis approach

Saeed Yousefi, Hadi Shabanpour, Reza Farzipoor Saen*, Gholam Reza Faramarzi

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

14 Citations (Scopus)


Data envelopment analysis (DEA) is a tool for measuring the relative efficiency of decision-making units (DMUs) that perform similar tasks. One of the uses of the DEA is the establishment of benchmarks for inefficient DMUs. These benchmarks play the role of target for inefficient DMUs. However, traditional DEA (TDEA) models fail to rank the efficient DMUs, and as a result, they cannot determine a benchmark for the inefficient DMUs. To overcome this shortcoming, this paper proposes virtual network DEA (NDEA) approach. The proposed method not only ranks the whole inefficient and efficient DMUs but also establishes a virtual benchmark called ideal DMU. The case study demonstrates the applicability of the proposed model.

Original languageEnglish
Pages (from-to)316-328
Number of pages13
JournalInternational Journal of Business Performance Management
Issue number4
Publication statusPublished - Jan 1 2014


  • Data envelopment analysis
  • DEA
  • DMU
  • Ideal decision-making unit
  • Network data envelopment analysis
  • Relative efficiency

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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