New multiplicative models to evaluate and merge units in data envelopment analysis

Document Type : Research Paper

Authors

1 ‎Shiraz University of Technology

2 shiraz university of technology

10.22059/ijms.2026.379907.676905

Abstract

This study‎ presents new multiplicative models to evaluate and merge decision-making units in the production possibilities set with convex geometry and variable returns to scale technology‎. The first proposed model evaluates the decision-making units as non-radial and input and output-oriented and accurately identifies all Pareto-efficient and inefficient units. Then, in the second model, a new unit is formed by merging units with optimal inputs and outputs, based on predetermined efficiency targets; in this regard‎, ‎the contribution of each input and output from each merged unit is determined, and it is shown that the contribution ratio of each input and output is the same in all units. By using the new non-radial model, managers can manage the efficiency of all inputs and outputs of the newly obtained unit in the merger procedure. ‎In the numerical section‎, ‎the proposed models are employed to evaluate and merge banks in Iran‎.

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