Article ID: | iaor19952329 |
Country: | Netherlands |
Volume: | 39 |
Issue: | 1/2 |
Start Page Number: | 55 |
End Page Number: | 66 |
Publication Date: | Apr 1995 |
Journal: | International Journal of Production Economics |
Authors: | Gong Linguo, Sun Bruce |
Keywords: | measurement |
This paper focuses on the non-parametric efficiency measurement of production operations under uncertainties. The authors extend the existing data envelopment analysis method to deal with inputs and outputs subject to random disturbances. They propose a new approach to performance evaluation using certainty equivalence of utility functions, which can accommodate decision maker’s risk attitude. They also formulate appropriate models to implement these approaches.