finding the defining hyperplanes of production possibility set with variable returns to scale using the linear independent vectors
Authors
Abstract:
The Production Possibility Set (PPS) is defined as the set of all inputs and outputs of a system in which inputs can produce outputs. In Data Envelopment Analysis (DEA), it is highly important to identify the defining hyperplanes and especially the strong defining hyperplanes of the empirical PPS. Although DEA models can determine the efficiency of a Decision Making Unit (DMU), but they cannot present efficient frontiers of PPS completely. The notion of defining hyperplanes is crucial to marginal discussions, marginal rates, marginal rates of substitution, sensitivity analysis, returns to scale, and in particular, the efficiency analysis of DMUs. In this paper, we propose a new method to determine all strong efficient(Pareto-efficient) DMUs and strong defining hyperplanes of the PPS with variable returns to scale which strong efficient DMUs are located on them. Furthermore, we apply the proposed method to find the normal vectors or gradient of the strong defining hyperplanes of the PPS including strong efficient DMUs. Consequently, the equations of these hyperplanes are determined. To illustrate the ability of the proposed method, some numerical examples are finally provided. Our method can be easily implemented using existing packages for operation research, such as GAMS.
similar resources
Characterization of efficient points of the production possibility set under variable returns to scale in DEA
We suggest a method for finding the non-dominated points of the production possibility set (PPS) with variable returns to scale (VRS) technology in data envelopment analysis (DEA). We present a multiobjective linear programming (MOLP) problem whose feasible region is the same as the PPS under variable returns to scale for generating non-dominated points. We demonstrate that Pareto solutions o...
full textFinding strong defining hyperplanes of Production Possibility Set
The production possibility set (PPS) is defined as the set of all inputs and outputs of a system in which inputs can produce outputs. In data envelopment analysis (DEA), identification of the strong defining hyperplanes of the empirical production possibility set (PPS) is important, because they can be used for determining rates of change of outputs with change in inputs. Also, efficient hyperp...
full textFinding strong defining hyperplanes of production possibility set with stochastic data
The production possibility set (PPS) is defined as the set of all inputs and outputs of a system in which inputs can produce outputs. In data envelopment analysis (DEA), identification of the strong defining hyperplanes of the empirical production possibility set (PPS) is important, because they can be used for determining rates of change of outputs with change in inputs. Also, efficient hyperp...
full textDetermination of Defining Hyperplanes of Dea Production Possibility Set
The ability of determining all defining hyperplanes of DEA production possibility set (efficient frontier) prior to the DEA computations is of extreme importance. Specially, access to efficient frontier permits a complete analysis (e.g. calculation of efficiency scores, returns to scale, sensitivity analysis and so on) in second phase for the corresponding model. This paper presents a linear sy...
full textTwo-stage Production Systems under Variable Returns to Scale Technology: A DEA Approach
Data envelopment analysis (DEA) is a non-parametric approach for performance analysis of decision making units (DMUs) which uses a set of inputs to produce a set of outputs without the need to consider internal operations of each unit. In recent years, there have been various studies dealt with two-stage production systems, i.e. systems which consume some inputs in their first stage to produce ...
full textFinding stability regions for preserving efficiency classification of variable returns to scale technology in data envelopment analysis
This paper addresses issue of sensitivity of efficiency classification of variable returns to scale (VRS) technology for enhancing the credibility of data envelopment analysis (DEA) results in practical applications when an additional decision making unit (DMU) needs to be added to the set being considered. It also develops a structured approach to assisting practitioners in making an appropria...
full textMy Resources
Journal title
volume 4 issue 15
pages 53- 66
publication date 2018-11-22
By following a journal you will be notified via email when a new issue of this journal is published.
Hosted on Doprax cloud platform doprax.com
copyright © 2015-2023