| Article ID: | iaor2006863 |
| Country: | United Kingdom |
| Volume: | 32 |
| Issue: | 4 |
| Start Page Number: | 813 |
| End Page Number: | 823 |
| Publication Date: | Apr 2005 |
| Journal: | Computers and Operations Research |
| Authors: | Cook Wade D., Green Rodney H. |
| Keywords: | measurement, statistics: data envelopment analysis |
In this paper, we investigate the relative operating efficiencies of a set of electric power plants, and of the individual power units that make up those plants. This two-stage “hierarchy” is a special case of the general hierarchical structure to which our model can be applied. The model views the plants at the highest level in the hierarchy as the decision-making units whose performance is optimized. Part of the output from the optimization is a set of performance measures for the components of those top level decision-making units. We use the data on 40 power units grouped under eight plants to demonstrate the model.