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Commensurability of performance metrics in production management

Arnaud Abad (), W. Briec and P. Ravelojaona ()
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Arnaud Abad: BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
W. Briec: LAMPS - LAboratoire de Modélisation Pluridisciplinaire et Simulations - UPVD - Université de Perpignan Via Domitia
P. Ravelojaona: ICN Business School, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine

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Abstract: This chapter examines the commensurability condition, also known as the unit invariance property, of performance measurements in production economics or related areas. This notion is presented through efficiency and productivity measures. This property is crucial for practitioners to obtain robust and reliable performance metrics, enabling them to adopt appropriate management strategies in production management. To emphasize the significance of this property in production management, the chapter begins by presenting the key performance metrics commonly used in the field. It then explains the commensurability condition through the lens of these metrics. This discussion highlights the practical implications of this property in production management, particularly in scenarios where management strategies depend on accurate performance evaluation.

Date: 2025
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Published in Reference Module in Social Sciences, Elsevier, 2025, 978-0-443-15785-1. ⟨10.1016/B978-0-443-28993-4.00103-7⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05100839

DOI: 10.1016/B978-0-443-28993-4.00103-7

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