Efficiency assessment using a multidirectional DDF approach
S Lozano, N Soltani - International Transactions in Operational …, 2020 - Wiley Online Library
S Lozano, N Soltani
International Transactions in Operational Research, 2020•Wiley Online LibraryThis paper proposes a new efficiency measure that aims at capturing the overall distance to
the efficient frontier and not the distance corresponding to a specific projection, as most
oriented and non‐oriented methods compute. The proposed approach uses a grid‐based
method to sample all possible improvement directions from a given operating point and for
each direction it computes a directional efficiency score solving a directional distance
function model. This provides information about the distribution of the distance to the efficient …
the efficient frontier and not the distance corresponding to a specific projection, as most
oriented and non‐oriented methods compute. The proposed approach uses a grid‐based
method to sample all possible improvement directions from a given operating point and for
each direction it computes a directional efficiency score solving a directional distance
function model. This provides information about the distribution of the distance to the efficient …
Abstract
This paper proposes a new efficiency measure that aims at capturing the overall distance to the efficient frontier and not the distance corresponding to a specific projection, as most oriented and non‐oriented methods compute. The proposed approach uses a grid‐based method to sample all possible improvement directions from a given operating point and for each direction it computes a directional efficiency score solving a directional distance function model. This provides information about the distribution of the distance to the efficient frontier. Therefore, the proposed multidirectional efficiency measure does not provide a single efficiency score but a distribution of efficiency scores. The minimum, the median, the Q1 and Q3 quartiles and the maximum can be singled out as representatives of that distribution. The latter corresponds to the closest among the computed efficient targets. In addition to the efficiency score distribution, the associated efficient targets are also provided. The proposed approach can take into account integer and nondiscretionary variables and a preference structure. An application of the method to assess the efficiency of material recovery facilities is presented.
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