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Cost and revenue efficiency in DEA with production trade-offs
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Javad Gerami *   |
| Department of Mathematics, Shiraz branch, Islamic Azad University, Shiraz, Iran , Geramijavad@gmail.com |
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Abstract: (104 Views) |
One of the ways to evaluate the performance of decision-making units (DMUs) such as banks and commercial companies is to use the concepts of economic efficiency in data envelopment analysis (DEA). In the process of evaluating the performance of the DMUs, it is important to apply the superior information of the decision maker (DM). In this paper, we obtain cost and revenue efficiency measurement models to evaluate DMUs based on the DM's opinion. In this regard, we use the method of production trade-offs in DEA. Using the production trade-off method, we apply the importance of inputs and outputs to the efficiency measurement process based on the opinion of the DM. We assumed that the cost (price) of each input (output) is different for different DMUs. We present the efficiency scores and efficient targets corresponding to the DMUs. We present an application of the presented models in the banking sector and present the results of the paper.
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| Keywords: Data envelopment analysis, Cost efficiency, Revenue efficiency, Production trade-offs. |
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Full-Text [PDF 369 kb]
(35 Downloads)
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Type of Study: Original |
Subject:
Mathematical Modeling and Applications of OR
Received: 2024/08/4 | Accepted: 2025/02/11 | Published: 2025/02/22
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