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Average-Revenue Efficiency and Optimal Scale Sizes in Environmental Analysis
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Monireh Jahani Sayyad Noveiri    , Sohrab Kordrostami * , Somayye Karimi Omshi |
| Lahijan Branch, Islamic Azad University, Lahijan, Iran , sohrabkordrostami@gmail.com |
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Abstract: (1417 Views) |
| Due to the changes of performance measures, a vital aspect for decision makers is finding optimal scale sizes of entities. Moreover, there are undesirable measures in many investigations. In the existing data envelopment analysis (DEA) approaches, optimal scale sizes (OSSs), average-cost efficiency (ACE) and average-revenue efficiency (ARE) of decision making units (DMUs) with desirable measures under strong disposability have been estimated while undesirable factors are presented in many real world examinations. Accordingly, in this research, OSSs and ARE of DMUs with undesirable outputs are addressed under managerial disposability. ARE is defined as the composite of scale and output allocative efficiencies under managerial disposability. To illustrate in detail, a two-stage DEA-based approach is rendered to estimate ARE and OSSs in the presence of undesirable outputs. A numerical example and an illustrative case are given to explain the proposed approach in this study. |
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| Keywords: Data envelopment analysis, average-revenue efficiency, optimal scale size, undesirable outputs, managerial disposability. |
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Full-Text [PDF 519 kb]
(6783 Downloads)
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Type of Study: Original |
Subject:
Mathematical Modeling and Applications of OR
Received: 2022/11/6 | Accepted: 2021/11/28 | Published: 2021/11/28
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