A combined use of DEA (Data Envelopment Analysis) with Strong Complementary Slackness Condition and DEA–DA (Discriminant Analysis)

This study discusses a combined use of DEA (Data Environment Analysis) with SCSC (Strong Complementary Slackness Condition) and DEA–DA (Discriminant Analysis). Many studies use DEA to evaluate the performance of various organizations in private and public sectors. A conventional use of DEA is not perfect because it still contains zero in many multipliers. This implies that DEA does not fully utilize information on all inputs and outputs. As a result, DEA produces many efficient organizations. To overcome the methodological difficulty, this study proposes a new use of DEA/SCSC and DEA–DA to reduce the number of efficient organizations.