A problem with the decomposition of technical inefficiency into scale and congestion components

Article Abstract:

Byrnes, Fare, Grosskopf and Lovell's 1988 work on the decomposition of inefficiency differentials into scale and congestion components is revisited. They defined the scale component in two ways: by comparing efficiency measures assuming the constant returns to scale, strong disposability of inputs (CS) and variable returns to scale, strong disposability of inputs (VS) technologies; and by comparing efficiency measures assuming constant returns to scale, weak disposability of inputs (CW) and variable returns to scale, weak disposability of resources (VW) technologies. The congestion component is also decomposed in two ways: by comparing efficiency measures assuming VS and VW technologies, and by comparing efficiency measures assuming CS and CW technologies. It is argued that such decompositions may be influenced by the order in which the scale and congestion components are measured.

Optimization theory, Mathematical programming

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A polyhedral approach to the asymmetric traveling salesman problem

Article Abstract:

A branch-and-cut algorithm was developed using facet-defining asymmetric traveling salesman problem (ATSP) cuts as its basis. This algorithm is aimed at addressing hard instances that earlier-designed procedures based on assignment problem (AP) cannot deal with. New separation algorithms for certain categories of facet-defining cuts were derived while a new variable-pricing approach dedicated to highly degenerate primal LP problems was devised. Based on these new findings, a branch-and-cut algorithm is created and evaluated using computational analysis. Findings revealed that this algorithm demonstrate better performance in solving hard instances than the most excellent AP-based algorithm. The ATSP-specific cuts were also found to be applicable to solving particular real-world instances.

Traveling-salesman problem, Functions, Polyhedral, Polyhedral functions

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Improving discernment in DEA using profiling: a comment

Article Abstract:

C. Tofallis' profiling strategy to enhance discrimination between several alternatives within data envelopment analysis merits discussion on several fronts. One problem is the disappearance of factors in the ratio between weight number of megawatts generated and weighted villages evacuated due to their zero-weighting. This, however, may be addressed by using 'average cross-evaluation' to evaluate the performance of each alternative.

Management Theory & Techniques, Research, Multiple criteria decision making, Management, Discriminant analysis

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