Developing a nondiscretionary model of slacks-based measure in data envelopment analysis

Discretionary models of data envelopment analysis (DEA) assume that all inputs and outputs are discretionary, i.e., controlled by the management of each decision making unit (DMU) and varied at its discretion. In any realistic situation, however, there may exist exogenously fixed or nondiscretionary inputs or outputs that are beyond the control of a DMU's management. The objective of this paper is to present a methodology for treating nondiscretionary in slacks-based measure (SBM) formulation. A numerical example is presented. At last, concluding remarks have been mentioned.