Non-discretionary inputs in data envelopment analysis

Article Abstract:

Three extensions of the data envelopment analysis model that incorporate non-discretionary inputs affecting production are analyzed. It is shown that the Banker/Morey model yields a distorted index of efficiency due to improper comparison of decision making units. The public sector model is unable to handle multiple non-discretionary factors while the Ray model can overstate efficiency. A model that addresses these weaknesses is derived.

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A new approach for technical efficiency estimation in multiple output production

Article Abstract:

A technical efficiency evaluation technique based on canonical regression analysis is found to be superior than data envelopment analysis as it provides a better ordinal efficiency index. The method's estimates are found to be unbiased even with the introduction of uncorrelated variables. However, the model requires a priori production function specification and care in determination of relevant variables to avoid distortions.

Production Management, Operations Research, Manufacturing processes, Manufacturing, Canonical correlation (Statistics)

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Performance evaluation when non-discretionary factors correlate with technical efficiency

Article Abstract:

The co-relation between non-discretionary factors and technical efficiency has been analyzed and the effect such co-relation has on the data envelopment analysis (DEA) has been discussed. The problems of the DEA model are discussed and a solution is provided through a new model that can overcome identified problems.

Management dynamics, Analysis, Management, Company business management, Industrial productivity, Critical path analysis, Global economy, Productivity

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