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A linear programming approach to efficiency evaluation in nonconvex metatechnologies

The notions of metatechnology and metafrontier arise in applications of data envelopment analysis (DEA) in which decision making units (DMUs) are not sufficiently homogeneous to be considered as operating in the same technology. In this case, DMUs are partitioned into different groups, each operatin...

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Main Authors: Mohsen Afsharian, Victor Podinovski
Format: Default Article
Published: 2018
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Online Access:https://hdl.handle.net/2134/28051
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author Mohsen Afsharian
Victor Podinovski
author_facet Mohsen Afsharian
Victor Podinovski
author_sort Mohsen Afsharian (7197755)
collection Figshare
description The notions of metatechnology and metafrontier arise in applications of data envelopment analysis (DEA) in which decision making units (DMUs) are not sufficiently homogeneous to be considered as operating in the same technology. In this case, DMUs are partitioned into different groups, each operating in the same technology. In contrast, the metatechnology includes all DMUs and represents all production possibilities that can in principle be achieved in different production environments. Often, the metatechnology cannot be assumed to be a convex set. In such cases benchmarking a DMU against the common metafrontier requires implementing either an enumeration algorithm and solving a linear program at each of its steps, or solving an equivalent mixed integer linear program. In this paper we show that the same task can be accomplished by solving a single linear program. We also show that its dual can be used for the returns-to-scale characterization of efficient DMUs on the metafrontier.
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institution Loughborough University
publishDate 2018
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spelling rr-article-94979152018-08-14T00:00:00Z A linear programming approach to efficiency evaluation in nonconvex metatechnologies Mohsen Afsharian (7197755) Victor Podinovski (1256964) Other commerce, management, tourism and services not elsewhere classified Data envelopment analysis Nonconvex metatechnology Metafrontier Returns to scale Business and Management not elsewhere classified The notions of metatechnology and metafrontier arise in applications of data envelopment analysis (DEA) in which decision making units (DMUs) are not sufficiently homogeneous to be considered as operating in the same technology. In this case, DMUs are partitioned into different groups, each operating in the same technology. In contrast, the metatechnology includes all DMUs and represents all production possibilities that can in principle be achieved in different production environments. Often, the metatechnology cannot be assumed to be a convex set. In such cases benchmarking a DMU against the common metafrontier requires implementing either an enumeration algorithm and solving a linear program at each of its steps, or solving an equivalent mixed integer linear program. In this paper we show that the same task can be accomplished by solving a single linear program. We also show that its dual can be used for the returns-to-scale characterization of efficient DMUs on the metafrontier. 2018-08-14T00:00:00Z Text Journal contribution 2134/28051 https://figshare.com/articles/journal_contribution/A_linear_programming_approach_to_efficiency_evaluation_in_nonconvex_metatechnologies/9497915 CC BY-NC-ND 4.0
spellingShingle Other commerce, management, tourism and services not elsewhere classified
Data envelopment analysis
Nonconvex metatechnology
Metafrontier
Returns to scale
Business and Management not elsewhere classified
Mohsen Afsharian
Victor Podinovski
A linear programming approach to efficiency evaluation in nonconvex metatechnologies
title A linear programming approach to efficiency evaluation in nonconvex metatechnologies
title_full A linear programming approach to efficiency evaluation in nonconvex metatechnologies
title_fullStr A linear programming approach to efficiency evaluation in nonconvex metatechnologies
title_full_unstemmed A linear programming approach to efficiency evaluation in nonconvex metatechnologies
title_short A linear programming approach to efficiency evaluation in nonconvex metatechnologies
title_sort linear programming approach to efficiency evaluation in nonconvex metatechnologies
topic Other commerce, management, tourism and services not elsewhere classified
Data envelopment analysis
Nonconvex metatechnology
Metafrontier
Returns to scale
Business and Management not elsewhere classified
url https://hdl.handle.net/2134/28051