Measuring the efficiency of decision making units

In management contexts, mathematical programming is usually used to evaluate a collection of possible alternative courses of action en route to selecting one which is best. In this capacity, mathematical programming serves as a planning aid to management. Data Envelopment Analysis reverses this role and employs mathematical programming to obtain ex post facto evaluations of the relative efficiency of management accomplishments, however they may have been planned or executed. Mathematical programming is thereby extended for use as a tool for control and evaluation of past accomplishments as well as a tool to aid in planning future activities. The CCR ratio form introduced by Charnes, Cooper and Rhodes, as part of their Data Envelopment Analysis approach, comprehends both technical and scale inefficiencies via the optimal value of the ratio form, as obtained directly from the data without requiring a priori specification of weights and/or explicit delineation of assumed functional forms of relations between inputs and outputs. A separation into technical and scale efficiencies is accomplished by the methods developed in this paper without altering the latter conditions for use of DEA directly on observational data. Technical inefficiencies are identified with failures to achieve best possible output levels and/or usage of excessive amounts of inputs. Methods for identifying and correcting the magnitudes of these inefficiencies, as supplied in prior work, are illustrated. In the present paper, a new separate variable is introduced which makes it possible to determine whether operations were conducted in regions of increasing, constant or decreasing returns to scale in multiple input and multiple output situations. The results are discussed and related not only to classical single output economics but also to more modern versions of economics which are identified with "contestable market theories."

http://www.utdallas.edu/~ryoung/phdseminar/BCC1984.pdf

Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis

Fuzzy Set Theory - And Its Applications, Third Edition is a textbook for courses in fuzzy set theory. It can also be used as an introduction to the subject. The character of a textbook is balanced with the dynamic nature of the research in the field by including many useful references to develop a deeper understanding among interested readers. The book updates the research agenda (which has witnessed profound and startling advances since its inception some 30 years ago) with chapters on possibility theory, fuzzy logic and approximate reasoning, expert systems, fuzzy control, fuzzy data analysis, decision making and fuzzy set models in operations research. All chapters have been updated. Exercises are included.

https://www.springer.com/productFlyer_978-0-7923-7435-0.pdf?SGWID=0-0-1297-33300503-0

Fuzzy Set Theory - and Its Applications

1. Introduction and Overview. 2. Detecting Influential Observations and Outliers. 3. Detecting and Assessing Collinearity. 4. Applications and Remedies. 5. Research Issues and Directions for Extensions. Bibliography. Author Index. Subject Index.

Regression Diagnostics: Identifying Influential Data and Sources of Collinearity

List of Tables. List of Figures. Preface. 1. General Discussion. 2. The Basic CCR Model. 3. The CCR Model and Production Correspondence. 4. Alternative DEA Models. 5. Returns to Scale. 6. Models with Restricted Multipliers. 7. Discretionary, Non-Discretionary and Categorical Variables. 8. Allocation Models. 9. Data Variations. Appendices. Index.

Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software

Goals of State Owned Enterprises (SOEs) and Privately Owned Enterprises (POEs) are here studied along with criteria that these organizations use to evaluate performance. The study was conducted with Delphi procedures using internal auditors of Latin American airlines as panel members. No statistically significant differences appeared to distinguish between the goals reported to be important by SOEs and POEs, but substantial differences in priority occurred in the criteria used to evaluate actual performance.

A delphi study of goals and evaluation criteria of state and privately owned Latin American airlines.

: This report covers certain research which has been directed to analyzing and systematizing historically independent market research steps into a rational marketing program for introducing a new product In the general case, this system is applicable to many situations where dicisions under uncertainty must be made in the light of incomplete and not necessarily comparable data The system's inter-relationship of tasks and decisions can best be illustrated and formalized by means of a network The links of the network represent research tasks and the nodes represent evaluations or decisions undertaken in the light of all prior information These alternatives together with their associated costs and risks are used to determine an optimal course of action for acquiring further information to achieve an optimum goal

Demon: decision mapping via optimum go-no networks. a model for new products marketing

Nonlinear network flows and convex programming over incidence matrices

: Relatively recent innovations in methods for risk analysis are here surveyed and related by means of certain linear programming characterizations applied to venture and risk analysis, stochastic decision trees, stochastic linear programming, linear programming under uncertainty, and chance constrained programming. Possibilities for combining these approaches in various ways are also discussed and illustrated by example. Implications are noted for accounting, budgeting and other aspects of management planning.

http://www.dtic.mil/cgi-bin/GetTRDoc?AD=AD0653727&Location=U2&doc=GetTRDoc.pdf

Some new approaches to risk

Futurology, interpreted as a forecast or, even better, as projections intended to influence the future, is applied to justify retention of historical costs in the context of proposed multidimensional accounting extensions for business, government and national goals accounting. Budgetary disclosures supported by opportunity costs and tradeoffs are also examined via multiple-objective models of goal programming varieties. Independent audit and attest is suggested not only for the mathematical model but also for managerial explanations of subsequent discrepancies from plans in each pertinent dimension.

William W. Cooper

Papers

A delphi study of goals and evaluation criteria of state and privately owned Latin American airlines.

Demon: decision mapping via optimum go-no networks. a model for new products marketing

Nonlinear network flows and convex programming over incidence matrices

Some new approaches to risk

A futurological justification for historical cost and multi-dimensional accounting