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Flexible measures in production process: A DEA-based approach

Published online by Cambridge University Press:  01 June 2011

Alireza Amirteimoori  and
Ali Emrouznejad
Alireza Amirteimoori
Affiliation:
Department of Applied Mathematics, Islamic Azad University, Rasht branch, Rasht, Iran. teimoori@guilan.ac.ir
Ali Emrouznejad
Affiliation:
Operations & Information Management Group, Aston Business School, Aston University, Birmingham B4 7ET, UK. a.emrouznejad@aston.ac.uk
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Abstract

Data envelopment analysis (DEA) has been proven as an excellent data-oriented efficiency analysis method for comparing decision making units (DMUs) with multiple inputs and multiple outputs. In conventional DEA, it is assumed that the status of each measure is clearly known as either input or output. However, in some situations, a performance measure can play input role for some DMUs and output role for others. Cook and Zhu [Eur. J. Oper. Res. 180 (2007) 692–699] referred to these variables as flexible measures. The paper proposes an alternative model in which each flexible measure is treated as either input or output variable to maximize the technical efficiency of the DMU under evaluation. The main focus of this paper is on the impact that the flexible measures has on the definition of the PPS and the assessment of technical efficiency. An example in UK higher education intuitions shows applicability of the proposed approach.

Keywords

Data envelopment analysisefficiencyflexible measure
Type
Research Article
Information
RAIRO - Operations Research , Volume 45 , Issue 1 , January 2011 , pp. 63 - 74
Copyright
© EDP Sciences, ROADEF, SMAI, 2011

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