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Home›Decision-making›Range-Adjusted Measure of Inefficiency
MCDMDEAcrisp

Range-Adjusted Measure of Inefficiency

DEA-RAM (Range-Adjusted Measure of Inefficiency) is a dea multi-criteria decision-making (MCDM) method introduced by Cooper, W. W. Park, K. S. Pastor, J. T. in 1999. It turns a decision matrix of alternatives scored on multiple criteria into a structured, reproducible result.

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When to use it

RAM is a non-radial DEA model using range-adjusted weights for input/output slacks. Unlike CCR/BCC (radial), RAM accounts for all slacks simultaneously. ρ=1 means fully efficient; ρ<1 quantifies normalised distance to frontier. Requires VRS (Σλ=1). Insensitive to units of measurement.

Strengths & limitations

Strengths
  • Follows a transparent, reproducible computational procedure that can be audited step by step.
  • Handles multiple criteria of differing scales and units within a single decision matrix.
Limitations
  • Assumes full compensation — a strong score on one criterion can offset a weak score on another.

Sources

  1. Cooper, W. W., Park, K. S., Pastor, J. T. (1999). RAM: A Range Adjusted Measure of Inefficiency for Use with Additive Models, and Relations to Other Models and Measures in DEA. Journal of Productivity Analysis DOI: 10.1023/A:1007701304281 ↗

How to cite this page

ScholarGate. (2026, June 2). Range-Adjusted Measure of Inefficiency. ScholarGate. https://scholargate.app/en/decision-making/dea-ram

Similar methods

DEADEA-BCCDEA-SBMDEA-SUPEREFFDEA-NETWORK-SBMDEA-ENVDEA-NETWORKDEA-CROSSEFF

Related reference concepts

Allocative Efficiency • Cost–Benefit AnalysisInput–Output Tables and AnalysisWelfare EconomicsCost-Benefit AnalysisProduction • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • CapacityRisk Adjustment and Case-Mix Analysis

Spotted an issue on this page? Report or suggest a fix →

ScholarGate — DEA-RAM (Range-Adjusted Measure of Inefficiency). Retrieved 2026-07-21 from https://scholargate.app/en/decision-making/dea-ram · Dataset: https://doi.org/10.5281/zenodo.20539026
Quick facts
Originator
Cooper, W. W. Park, K. S. Pastor, J. T.
Subfamily
DEA
Year
1999
Type
Non-parametric efficiency — Non-radial, weighted slack-based (VRS)
Value Space
crisp
Uncertainty
None
Compensation
full
Rank Reversal
No
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