Efficiency in the Worst Production Situation Using Data Envelopment Analysis
Data envelopment analysis (DEA) measures relative efficiency among the decision making units (DMU) without considering noise in data.The least efficient DMU indicates that it is in the worst situation. In this paper, we measure efficiency of individual DMU whenever it losses the maximum output, an...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Hindawi Publishing Corporation
2013
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| Subjects: | |
| Online Access: | http://eprints.usm.my/38928/ http://eprints.usm.my/38928/1/Efficiency_in_the_Worst_Production_Situation_Using_Data_Envelopment_Analysis.pdf |
| Summary: | Data envelopment analysis (DEA) measures relative efficiency among the decision making units (DMU) without considering noise
in data.The least efficient DMU indicates that it is in the worst situation. In this paper, we measure efficiency of individual DMU
whenever it losses the maximum output, and the efficiency of other DMUs is measured in the observed situation. This efficiency is
the minimum efficiency of a DMU.The concept of stochastic data envelopment analysis (SDEA) is a DEA method which considers
the noise in data which is proposed in this study.Using bounded Pareto distribution, we estimate theDEA efficiency fromefficiency
interval. Small value of shape parameter can estimate the efficiencymore accurately using the Pareto distribution. Rank correlations
were estimated between observed efficiencies and minimum efficiency as well as between observed and estimated efficiency. The
correlations are indicating the effectiveness of this SDEA model. |
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