The mystification of operational competitiveness rating analysis
Shouhong Wang and
Hai Wang
Additional contact information
Shouhong Wang: Department of Marketing|Business Information Systems, Charlton College of Business, University of Massachusetts Dartmouth, Dartmouth, MA 02747-2300, USA, Postal: Department of Marketing|Business Information Systems, Charlton College of Business, University of Massachusetts Dartmouth, Dartmouth, MA 02747-2300, USA
Hai Wang: Department of Finance and Management Science, Sobey School of Business, Saint Mary's University, Halifax, NS, Canada B3H 3C3, Postal: Department of Finance and Management Science, Sobey School of Business, Saint Mary's University, Halifax, NS, Canada B3H 3C3
Managerial and Decision Economics, 2005, vol. 26, issue 8, 535-538
Abstract:
This note examines the fault of the operational competitiveness rating analysis (OCRA) method. The premise of the OCRA method requires that a single scalar measurement must be applied to inputs and outputs to calculate the performance ratings for production units. This property renders the OCRA method worthless, since simple comparisons of the aggregated inputs and outputs can generate accurate productive efficiency evaluation results for production units if the simple aggregation can be done. To avoid this problem, the OCRA method includes subjective weighting elements for input and output categories, so called calibration constants, into the performance rating computation. This approach of the OCRA method introduces much confusion for productive efficiency evaluation, and it violates the economics axiom of output|input maximization in its application context. Copyright © 2005 John Wiley & Sons, Ltd.
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
http://hdl.handle.net/10.1002/mde.1244 Link to full text; subscription required (text/html)
Related works:
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:wly:mgtdec:v:26:y:2005:i:8:p:535-538
DOI: 10.1002/mde.1244
Access Statistics for this article
Managerial and Decision Economics is currently edited by Antony Dnes
More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().