Abstract
This paper develops a model for an improved efficiency measure through directional distance formulation of data envelopment analysis. It deals with cases where positive and negative values co-exist as production factors. The developed model has properties such as scalar quantity for measuring efficiency and it identifies all sources of inefficiency. The measure is weakly monotonic; units and translation do not vary with respect to inputs and outputs. The proposed model, under some restrictions, reduces to basic Data Envelopment Analysis (DEA) models such as Charnes-Cooper-Rhodes (CCR), Banker-Charnes-Cooper (BCC), and a slack based model (SBM). In addition to the above, the proposed model includes the closest targets for a given inefficient unit to achieve efficiency with less effort. The proposed model is validated using a case study done on Information Technology firms operating in India.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 325-346 |
| Number of pages | 22 |
| Journal | Annals of Operations Research |
| Volume | 229 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jun 2015 |
Keywords
- Data envelopment analysis
- Directional distance function
- Efficiency
- Non-radial efficiency
ASJC Scopus subject areas
- General Decision Sciences
- Management Science and Operations Research