Short- and long-run plant capacity notions: Definitions and comparison
Giovanni Cesaroni,
Kristiaan Kerstens and
Ignace Van de Woestyne
European Journal of Operational Research, 2019, vol. 275, issue 1, 387-397
Abstract:
Starting from the existing input- and output-oriented plant capacity measures, this contribution proposes new long-run input- and output-oriented plant capacity measures. While the former leave fixed inputs unchanged, the latter allow for changes in all input dimensions to gauge either a maximal plant capacity output or a minimal input combination at which non-zero production starts. We also establish a formal relation between the existing short-run and the new long-run plant capacity measures. Furthermore, for a standard nonparametric frontier technology, all linear programs as well as their variations are specified to compute all efficiency measures defining these short- and long-run plant capacity concepts. Furthermore, it is shown how the new long run plant capacity measures are identical to existing models of a variable returns to scale technology without inputs or without outputs: thus, we offer an interesting production economic justification for these models. Finally, we numerically illustrate this basic relationship between these short-run and long-run technical concepts of capacity utilisation and provide an empirical application.
Keywords: Data Envelopment Analysis; Efficiency; Plant capacity utilisation (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221718309482
Full text for ScienceDirect subscribers only
Related works:
Working Paper: Short- and long-run plant capacity notions: Definitions and comparison (2019) 
Working Paper: Short- and Long-run Plant Capacity Notions: Definitions and Comparison (2017) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:275:y:2019:i:1:p:387-397
DOI: 10.1016/j.ejor.2018.11.023
Access Statistics for this article
European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati
More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().