Developing a neutral slacks-based measure for production line selection

Majid Azadi and Reza Farzipoor Saen

International Journal of Operational Research, 2012, vol. 15, issue 4, 359-370

Abstract: Production line selection has a strategic importance for every company. One of the techniques that can be used for selecting production line is data envelopment analysis (DEA). Traditional DEA models such as Charnes-Cooper-Rhodes and Banker-Charnes-Cooper can only measure radial efficiency (weak efficiency). To measure strong efficiency in DEA, Tone (2001) proposed slacks-based measure (SBM). This model deals directly with the input excesses and output shortfalls. The objective of this paper is to propose a neutral SBM for selecting the best production line. A case study demonstrates the application of the proposed model.

Keywords: production line selection; DEA; data envelopment analysis; cross-efficiency models; slacks-based measure; NSBM; neutral SBM; aggressive model; benevolent model; modelling. (search for similar items in EconPapers)
Date: 2012
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