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Author(s): A. S. Camanho
M. C. Portela
C. B. Vaz
Title: Efficiency analysis accounting for internal and external non-discretionary factors
Issue Date: 2009
Abstract: This paper develops a method based on data envelopment analysis (DEA) for efficiency assessmentstaking into account the effect of non-discretionary factors.A typology that classifies the non-discretionary factors into two groups is proposed: the factors thatcharacterize the external conditions where the decision making units (DMUs) operate (external factors),and the factors that are internal to the production process but cannot be controlled by the decisionmakers (internal factors).This paper proposes an enhanced DEA model that accommodates non-discretionary inputs and outputsand treats them differently depending on their classification as internal or external to the productionprocess. This generalized model integrates the previous approaches for dealing with non-discretionaryvariables described in the DEA literature. The model defines the efficient frontier based exclusively onthe discretionary variables and internal non-discretionary factors, but the potential peers of each DMUare restricted to other units facing comparable external conditions (represented by the external nondiscretionaryfactors). The peer selection criteria implemented in the DEA model is informed by decisionmakers' opinion. The applicability of the model developed is illustrated with a real-world assessment ofretailing stores.
Subject: Outras ciências da engenharia e tecnologias
Other engineering and technologies
Scientific areas: Ciências da engenharia e tecnologias::Outras ciências da engenharia e tecnologias
Engineering and technology::Other engineering and technologies
Document Type: Artigo em Revista Científica Internacional
Rights: restrictedAccess
Appears in Collections:FEUP - Artigo em Revista Científica Internacional

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