Ratio-based RTS determination in weight-restricted DEA models

This paper provides computationally efficient approaches for determining to which returns to scale (RTS) class a unit belongs in weight-restricted Data Envelopment Analysis (DEA) models. A non-traditional computational algorithm is introduced. The suggested approach is based on the calculation of certain ratios within the data set and offers obvious computational advantages over the traditional approaches involving the solution of standard DEA models. Some theorems and algorithms are given. Computational advantages of the provided results are discussed and one of the algorithms is illustrated using real world data.

► Reviewing of WRDEA models and RTS determination in these models. ► RTS determination using envelopment WRDEA models. ► RTS determination in WRDEA models without surveying alternative solutions. ► Ratio-based RTS determination in WRDEA models. ► Computational remarks and a real world example.