Introduction to the Theory and Application of Data - download pdf or read online

By Emmanuel Thanassoulis

ISBN-10: 1461355389

ISBN-13: 9781461355380

ISBN-10: 146151407X

ISBN-13: 9781461514077

1 info ENVELOPMENT research facts Envelopment research (DEA) used to be first and foremost constructed as a mode for assessing the comparative efficiencies of organisational devices reminiscent of the branches of a financial institution, faculties, sanatorium departments or eating places. the major in every one case is they practice function which makes the devices related a similar functionality when it comes to the categories of source they use and the kinds of output they produce. for instance all financial institution branches to be in comparison would routinely use employees and capital resources to impact source of revenue producing actions corresponding to advancing loans, promoting monetary items and undertaking banking transactions on behalf in their consumers. The efficiencies assessed during this context by way of DEA are meant to mirror the scope for source conservation on the unit being assessed with no detriment to its outputs, or however, the scope for output augmentation with out extra assets. The efficiencies assessed are comparative or relative simply because they replicate scope for source conservation or output augmentation at one unit relative to different similar benchmark devices instead of in a few absolute feel. We lodge to relative instead of absolute efficiencies simply because in so much functional contexts we lack enough info to derive some of the best measures of absolute potency. DEA used to be initiated through Charnes Cooper and Rhodes in 1978 of their seminal paper Chames et al. (1978). The paper operationalised and prolonged via linear programming creation economics suggestions of empirical potency positioned forth a few 20 years past by way of Farrell (1957).

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1 facts ENVELOPMENT research facts Envelopment research (DEA) was once firstly constructed as a mode for assessing the comparative efficiencies of organisational devices similar to the branches of a financial institution, faculties, medical institution departments or eating places. the most important in every one case is they practice function which makes the devices similar an analogous functionality by way of the types of source they use and the categories of output they produce.

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Extra info for Introduction to the Theory and Application of Data Envelopment Analysis: A Foundation Text with Integrated Software

Example text

3) where x = z and y = 2. 1. ) is not permitted to drop below the 2 units of output that D 1 secures. g. 2 + 42~ + 22: and output level of 2 2~ + 72*2 + 6 2~ + 62: = 2. 6667 units. 67%. The solution to the model yields further information. 3333. 3333 = 2 units. This scaled down version of D4 therefore has been used by the model as a benchmark in estimating the technical input efficiency of D 1. As we will see later identification of benchmarks of this kind has great practical importance within the broader framework of performance management.

UNIT OF ASSESSMENT AND INPUT-OUTPUT VARIABLES As we saw in Chapter 1, the definition of the unit of assessment, that is the entity whose efficiency we wish to measure relative to that of other entities of its kind, is one of the first steps in carrying out assessments of comparative performance. We shall adopt in respect of the unit of assessment the term Decision Making Unit (DMU), coined by Charnes et al. (1978), in their seminal paper on DEA. DMUs should be homogeneous entities in the sense that they use the same resources to procure the same outcomes albeit in varying amounts.

Ratios precede DEA as instruments of performance assessment and many practitioners find them easier to use. The strength of DEA over conventional ratio analysis lies in that it takes into account simultaneously all input and output variables rather than one output to input ratio at a time which could lead to misleading conclusions. ) Full details on the assessment of police Forces outlined above can be found in Thanassoulis (1995). Another use of DEA in assessing police services can be found in Carrington et al.

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Introduction to the Theory and Application of Data Envelopment Analysis: A Foundation Text with Integrated Software by Emmanuel Thanassoulis


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