A comparative analysis of the DEA-CCR model and the VIKOR method

Data Envelopment Analysis (DEA) introduces a model for weights determination maximizing efficiency of the decision-making units. The primary focus of the DEA model is to compare decision-making units (alternatives) in terms of their efficiency in converting inputs into outputs. The multicriteria decision making (MCDM) method VIKOR uses a common set of weights expressing a decision maker's preferences. In contrast, the CCR model of DEA does not provide a common set of weights that could express the preferences of a decision maker. The weights in MCDM do not have a clear economic significance, but their use provides the opportunity to model the real aspects of decision making, such as the preference structure. A comparison of DEA and MCDM shows that DEA resembles MCDM, but the results differ. In spite of these differences, DEA could be used as a supplement for screening alternatives within MCDM. An application of DEA and MCDM is illustrated by an example of hydropower system planning.