Advances and Applications in Statistics
Volume 51, Issue 2, Pages 131 - 149
(August 2017) http://dx.doi.org/10.17654/AS051020131 |
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INVERSE LINEAR PROGRAMMING IN COST EFFICIENCY AND NETWORK
Soroor Sadri, Mohsen Rostamy-Malkhalifeh and Naghi Shoja
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Abstract: In today’s world wherein every routine is based on economic factors, there is no doubt that theoretical sciences are driven by their capabilities and affordances in terms of economy. As a mathematical tool, data envelopment analysis (DEA) is provided to economics, so that one can investigate associated costs, prices and revenues of economic units. So far, numerous studies have been undertaken in a wide range of disciplines which were proven to be investigable through the presented methods in DEA, so as to address a wide range of application-related issues. In spite of numerous applications of inverse linear programming (ILP) in various fields of study, it has been relatively rarely applied when it comes to DEA. As such, the present paper addresses the application of ILP in DEA. Using the ILP concept proposed by Zhang and Liu [16], a constant return to scale cost model was presented based on ILP; the very same procedure was then applied to a numerical case study, so as to find the adequate cost for the units under evaluation which were CCR-efficient, rather than cost-efficient. Continuing with the research, a cost model of two-stage structure was presented, on which the ILP approach was implemented. |
Keywords and phrases: data envelopment analysis, network DEA, cost efficiency, inverse linear programming. |
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