| Name: | Description: | Size: | Format: | |
|---|---|---|---|---|
| 418.24 KB | Adobe PDF |
Authors
Advisor(s)
Abstract(s)
This paper develops a method based on data envelopment analysis (DEA) for efficiency assessments
taking into account the effect of non-discretionary factors.
A typology that classifies the non-discretionary factors into two groups is proposed: the factors that
characterize the external conditions where the decision making units (DMUs) operate (external factors),
and the factors that are internal to the production process but cannot be controlled by the decision
makers (internal factors).
This paper proposes an enhanced DEA model that accommodates non-discretionary inputs and outputs
and treats them differently depending on their classification as internal or external to the production
process. This generalized model integrates the previous approaches for dealing with non-discretionary
variables described in the DEA literature. The model defines the efficient frontier based exclusively on
the discretionary variables and internal non-discretionary factors, but the potential peers of each DMU
are restricted to other units facing comparable external conditions (represented by the external nondiscretionary
factors). The peer selection criteria implemented in the DEA model is informed by decision
makers' opinion. The applicability of the model developed is illustrated with a real-world assessment of
retailing stores.
Description
Keywords
Data envelopment analysis Retailing Non-discretionary factors
Citation
Camanho, Ana; Portela, Maria; Vaz, Clara B. (2009). Efficiency analysis accounting for internal and external non-discretionary factors. Computers & Operations Research. ISSN 0305-0548. 36:5, p.1591-1601