Input/Output Variables Selection in Data Envelopment Analysis: A Shannon Entropy Approach

The purpose of this study is to provide an efficient method for the selection input–output indicators in data envelopment analysis (DEA) approach, order improve discriminatory power DEA evaluation process and performance homogeneous decision-making units (DMUs) presence negative values data. For purpose, Shannon entropy technique used as one most important methods determining weight indicators. Moreover, due some indicators, range directional measure (RDM) model basic research. Finally, demonstrate applicability proposed food beverage industry has been selected from Tehran stock exchange (TSE) a case study, related 15 stocks have extracted industry. numerical experimental results indicate efficacy hybrid analysis–Shannon (DEASE) approach evaluate under Furthermore, DEASE greater than that classical model.