Data ‎E‎nvelopment Analysis and Malmquist Index for Measuring Productivity of Inefficient ‎DMUs

Data envelopment analysis (DEA), is a non-parametric mathematical programming technique to evaluate the efficiency of a set of homogeneous decision-making units (DMUs), so that DMUs are evaluated into two groups, efficient and inefficient. According to the staggering costs in order to managing DMUs or organizations, maintaining some loss-making organizations are not cost-effective. Therefore, one of the concerns of managers in the discussion related to the financial problems of organizations is the maintenance or merger or elimination of inefficient organizations (inefficient DMUs). However, this article focuses on the performance of inefficient units. Therefore, we measure the productivity of inefficient DMUs using the revised Malmquist productivity index (MPI) to make a decision based on the maintenance or merger or elimination of these DMUs by decision makers (DMs).