Ranking of decision making units in data envelopment analysis: A distance-based approach

In non-parametric methods, many units are evaluated as efficient. Several methods for prioritizing efficient units are reported in the literature. Andersen et al. and thereafter Mehrabian et al. proposed two methods for ranking efficient units, but both methods break down in some cases. This paper describes a new DEA ranking approach that uses L2-norm. In proposed DEA ranking approach, the difficulties of the existing methods have been removed.