SCALING PRODUCTION AND IMPROVING EFFICIENCY IN DEA: AN INTERACTIVE APPROACH

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RODDER WILHELM; KLEINE ANDREAS; DELLNITZ ANDREAS

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Journal Paper

Paper Information

Journal: JOURNAL OF INDUSTRIAL ENGINEERING INTERNATIONAL Year:2018 | Volume:14 | Issue:3 Page(s): 501-510

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Title

SCALING PRODUCTION AND IMPROVING EFFICIENCY IN DEA: AN INTERACTIVE APPROACH

Author(s)

RODDER WILHELM | KLEINE ANDREAS | DELLNITZ ANDREAS | Issue Writer Certificate

Keywords

DATA ENVELOPMENT ANALYSIS

RETURNS TO SCALE

EFFICIENCY

UPSIZING/DOWNSIZING

MPSS

Abstract

DEA models help a DMU to detect its (in-)efficiencyand to improve activities, if necessary. Efficiencyis only one economic aim for a decision-maker; however, up-or downsizing might be a second one. Improvingefficiency is the main topic in DEA; the long-term strategytowards the right production size should attract our attentionas well. Not always the management of a DMU primarilyfocuses on technical efficiency but rather isinterested in gaining scale effects. In this paper, a formulafor returns to scale (RTS) is developed, and this formula iseven applicable for interior points of technology. Particularly, technical and scale inefficient DMUs need sophisticatedinstruments to improve their situation. ConsideringRTS as well as efficiency, in this paper, we give an advicefor each DMU to find an economically reliable path fromits actual situation to better activities and finally to mostproductive scale size (MPSS), perhaps. For realizing thispath, we propose an interactive algorithm, thus harmonizingthe scientific findings and the interests of the management. Small numerical examples illustrate such pathsfor selected DMUs; an empirical application in theatremanagement completes the contribution.

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APA: Copy

RODDER, WILHELM, KLEINE, ANDREAS, & DELLNITZ, ANDREAS. (2018). SCALING PRODUCTION AND IMPROVING EFFICIENCY IN DEA: AN INTERACTIVE APPROACH. JOURNAL OF INDUSTRIAL ENGINEERING INTERNATIONAL, 14(3), 501-510. SID. https://sid.ir/paper/310146/en

Vancouver: Copy

RODDER WILHELM, KLEINE ANDREAS, DELLNITZ ANDREAS. SCALING PRODUCTION AND IMPROVING EFFICIENCY IN DEA: AN INTERACTIVE APPROACH. JOURNAL OF INDUSTRIAL ENGINEERING INTERNATIONAL[Internet]. 2018;14(3):501-510. Available from: https://sid.ir/paper/310146/en

IEEE: Copy

WILHELM RODDER, ANDREAS KLEINE, and ANDREAS DELLNITZ, “SCALING PRODUCTION AND IMPROVING EFFICIENCY IN DEA: AN INTERACTIVE APPROACH,” JOURNAL OF INDUSTRIAL ENGINEERING INTERNATIONAL, vol. 14, no. 3, pp. 501–510, 2018, [Online]. Available: https://sid.ir/paper/310146/en

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