Abstract:

The cross-efficiency evaluation method is reviewed which is developed as a data envelopment analysis (DEA) extensive tool. The cross-efficiency evaluation method is utilized to identify the decision making unit (DMU) with the best practice and to rank the DMUs by their respective cross-efficiency scores. The main drawbacks of the cross-efficiency evaluation method when the ultimate average cross-efficiency scores are used to evaluate and rank the DMUs are also pointed out. With the research gap, an improved technique for order preference by similarity to ideal solution (TOPSIS) is introduced to rank the cross-efficiency by eliminating the average assumption. Finally, an empirical example is illustrated to examine the validity of the proposed method.