Abstract
Although DEA does not need a priori information on the underlying functional forms and weights among various input and output measures, it assumes proportional improvements of inputs or outputs. This assumption becomes invalid when a preference structure over the improvement of different inputs (outputs) is present in evaluating (inefficient) DMUs (see also Chap. 7). We need models where a particular set of performance measures is given pre-emptive priority to improve.
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Notes
- 1.
The material in this section is adapted from European Journal of Operational Research, Vol 123, Zhu, J., Multi-factor Performance Measure Model with An Application to Fortune 500 Companies, 105–124, 2000, with permission from Elsevier Science.
References
Banker, R. D., & Morey, R. C. (1986). Efficiency analysis for exogenously fixed inputs and outputs. Operations Research, 34, 513–521.
Zhu, J. (2000). Multi-factor performance measure model with an application to Fortune 500 companies. European Journal of Operational Research, 123(1), 105–124.
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Zhu, J. (2014). Measure-Specific DEA Models. In: Quantitative Models for Performance Evaluation and Benchmarking. International Series in Operations Research & Management Science, vol 213. Springer, Cham. https://doi.org/10.1007/978-3-319-06647-9_6
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DOI: https://doi.org/10.1007/978-3-319-06647-9_6
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