In management contexts, mathematical programming is usually used to evaluate a collection of possible alternative courses of action en route to selecting one which is best. In this capacity, mathematical programming serves as a planning aid to management. Data Envelopment Analysis reverses this role and employs mathematical programming to obtain ex post facto evaluations of the relative efficiency of management accomplishments, however they may have been planned or executed. Mathematical programming is thereby extended for use as a tool for control and evaluation of past accomplishments as well as a tool to aid in planning future activities. The CCR ratio form introduced by Charnes, Cooper and Rhodes, as part of their Data Envelopment Analysis approach, comprehends both technical and scale inefficiencies via the optimal value of the ratio form, as obtained directly from the data without requiring a priori specification of weights and/or explicit delineation of assumed functional forms of relations between inputs and outputs. A separation into technical and scale efficiencies is accomplished by the methods developed in this paper without altering the latter conditions for use of DEA directly on observational data. Technical inefficiencies are identified with failures to achieve best possible output levels and/or usage of excessive amounts of inputs. Methods for identifying and correcting the magnitudes of these inefficiencies, as supplied in prior work, are illustrated. In the present paper, a new separate variable is introduced which makes it possible to determine whether operations were conducted in regions of increasing, constant or decreasing returns to scale (in multiple input and multiple output situations). The results are discussed and related not only to classical (single output) economics but also to more modern versions of economics which are identified with "contestable market theories."efficiency, technical inefficiency, returns to scale, mathematical programming, linear programming
A new conceptual and analytical vehicle for problems of temporal planning under uncertainty, involving determination of optimal (sequential) stochastic decision rules is defined and illustrated by means of a typical industrial example. The paper presents a method of attack which splits the problem into two non-linear (or linear) programming parts, (i) determining optimal probability distributions, (ii) approximating the optimal distributions as closely as possible by decision rules of prescribed form.
COMMUNICATIONS 0.80 0.89 0.94 0.97 0.98 0.99 273 0.97 0.996 0.998 0.99 0.9995 0.9998 0.998 0.99993 0.99998 0.9995 0.999992 0.999998 0.9999 0.999999 0.9999998 0.99997 0.9999999 0.99999998TABLE 2 8We notice that the acceleration makes hazard one very dominant in the accelerated test. If we pick the value m = 5, which has been used as a magic rule of thumb number, that our probability of detecting there is a mode other than the one which was made artificially dominant is not very promising. We here in fact will see only the mode of failure that is, under actual use conditions, not dominant, and we will give an estimate of "mean life" under actual use conditions that is in fact three times the true "mean life" for the example used,Thurber's fable of the chipmunk and the shrike, "He who hesitates is sometimes saved."There should be a moral to the story. The best one for this case seems to come from
REFERENCES[l] Allen, W.
A model for measuring the efficiency of Decision Making Units (=DMU's) is presented, along with related methods of implementation and interpretation. The term DMU is intended to emphasize an orientation toward managed entities in the public and/or not-for-profit sectors. The proposed approach is applicable to the multiple outputs and designated inputs which are common for such DMU's. A priori weights, or imputations of a market-price-value character are not required. A mathematical programming model applied to observational data provides a new way of obtaining empirical estimates of extrernal relations---such as the production functions and/or efficient production possibility surfaces that are a cornerstone of modern economics. The resulting extremal relations are used to envelop the observations in order to obtain the efficiency measures that form a focus of the present paper. An illustrative application utilizes data from Program Follow Through (=PFT). A large scale social experiment in public school education, it was designed to test the advantages of PFT relative to designated NFT (=Non-Follow Through) counterparts in various parts of the U.S. It is possible that the resulting observations are contaminated with inefficiencies due to the way DMU's were managed en route to assessing whether PFT (as a program) is superior to its NFT alternative. A further mathematical programming development is therefore undertaken to distinguish between "management efficiency" and "program efficiency." This is done via procedures referred to as Data Envelopment Analysis (=DEA) in which one first obtains boundaries or envelopes from the data for PFT and NFT, respectively. These boundaries provide a basis for estimating the relative efficiency of the DMU's operating under these programs. These DMU's are then adjusted up to their program boundaries, after which a new inter-program envelope is obtained for evaluating the PFT and NFT programs with the estimated managerial inefficiencies eliminated. The claimed superiority of PFT fails to be validated in this illustrative application. Our DEA approach, however, suggests the additional possibility of new approaches obtained from PFT-NFT combinations which may be superior to either of them alone. Validating such possibilities cannot be done only by statistical or other modelings. It requires recourse to field studies, including audits (e.g., of a U.S. General Accounting Office variety) and therefore ways in which the results of a DEA approach may be used to guide such further studies (or audits) are also indicated.program efficiency, managerial efficiency, efficiency frontiers
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