Efficiency Analysis for Exogenously Fixed Inputs and Outputs

Rajiv D. Banker and Richard C. Morey
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Rajiv D. Banker: Carnegie-Mellon University, Pittsburgh, Pennsylvania
Richard C. Morey: Duke University, Durham, North Carolina

Operations Research, 1986, vol. 34, issue 4, 513-521

Abstract: We evaluate, by means of mathematical programming formulations, the relative technical and scale efficiencies of decision making units (DMUs) when some of the inputs or outputs are exogenously fixed and beyond the discretionary control of DMU managers. This approach further develops the work on efficiency evaluation and on estimation of efficient production frontiers known as data envelopment analysis (DEA). We also employ the model to provide efficient input and output targets for DMU managers in a way that specifically accounts for the fixed nature of some of the inputs or outputs. We illustrate the approach, using real data, for a network of fast food restaurants.

Keywords: 504 exogenously fixed inputs and outputs; 638 data envelopment analysis (search for similar items in EconPapers)
Date: 1986
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