Open AccessEfficiency in the Worst Production Situation Using Data Envelopment Analysis
Author(s) -
Md. Kamrul Hossain,
Anton Abdulbasah Kamil,
Adli Mustafa,
Md. Azizul Baten
Publication year - 2013
Publication title -
advances in decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.178
H-Index - 13
eISSN - 2090-3367
pISSN - 2090-3359
DOI - 10.1155/2013/354509
Subject(s) - data envelopment analysis , efficiency , production (economics) , measure (data warehouse) , rank (graph theory) , statistics , envelopment , pareto efficiency , value (mathematics) , mathematics , pareto principle , econometrics , computer science , economics , data mining , microeconomics , combinatorics , estimator
Data envelopment analysis (DEA) measures relative efficiency among the decision making units (DMU) without considering noise\udin data.The least efficient DMU indicates that it is in the worst situation.In this paper, we measure efficiency of individual DMU\udwhenever it losses the maximum output, and the efficiency of other DMUs is measured in the observed situation.This efficiency is\udthe minimum efficiency of a DMU.The concept of stochastic data envelopment analysis (SDEA) is a DEA method which considers\udthe noise in data which is proposed in this study.Using bounded Pareto distribution, we estimate the DEA efficiency from efficiency\udinterval. Small value of shape parameter can estimate the efficiency more accurately using the Pareto distribution.Rank correlations\udwere estimated between observed efficiencies and minimum efficiency as well as between observed and estimated efficiency.The\udcorrelations are indicating the effectiveness of this SDEA model
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