(ii) identifying whether increasing decreasing, or constant returns to scale possibilities are present for further exploitation. (i) estimating pure technical efficiency at the given scale of operation and The BCC model (1984) distinguishes between technical and scale inefficiencies by (1978) by providing for variable returns to scale (VRS). There is another type of model called the output-oriented model that attempts to maximize outputs without requiring more of any of the observed input values that is expressed as follows:īCC model Banker, Charnes and Cooper (1984) extended the earlier work of Charnes et al. This is called the input-oriented model that is expressed as follows: One version of a CCR model aims to minimize inputs while satisfying at least the given output levels. (ii) assumes constant returns to scale (CRS). ![]() ![]() (i) yields an objective evaluation of overall efficiency and ![]() Charnes, Cooper and Rhodes (1978) first proposed DEA as an evaluation tool to measure and compare the relative efficiency of DMUs. In this lecture we solve two DEA examples using MS Excel Example 1: 1 Input 3 Outputs having 2 DMUs and Example 2: 2 Inputs 3 Outputs having 4 DMUsThe DEA s.
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