DOI: 10.36347/sjpms

Pages: 21-29

Data envelopment analysis (DEA)is a method that evaluates the efficiency of decision making units by the linear programming problems. The decision making units have multiple input and outputs. Some of the decision making units can have a two-stage structure that use the first stage inputs to create the outputs that are considered the inputs in the second stage. Then the second stage uses the outputs of the first stage to produce its outputs. The out puts of the first stage are called the mean value. The relationship between the data envelopment analysis and the multi objective linear fractional programming provides a strong tool for the decision maker to provide an appropriate model for the inefficient units based on the existing limitations. In this thesis we present a new model based on the two-objective linear fractional programming that besides being linear it would be possible to use the obtained results in recognizing the efficiency or inefficiency of the two stage decision making units. Keywords: data envelopment analysis, two-stage decision making units, multi-objective linear fractional programming, efficiency test