Decisional data and the principle of maximum efficiency estimation

✍ Scribed by M.Diane Pettypool; Marvin D. Troutt

• Book ID: 103928245
• Publisher: Elsevier Science
• Year: 1988
• Tongue: English
• Weight: 237 KB
• Volume: 11
• Category: Article
• ISSN: 0895-7177
• DOI: 10.1016/0895-7177(88)90665-6

✦ Synopsis

In 1978 Charnes, Cooper, and Rhodes introduced Data Envelopment Analysis (DEA) as a method to rate the efficiencies of decision making units'by imputing weights to observed inputs and outputs in order to form an efficiency ratio. Based on this work, a three step procedure is presented which may be used to estimate the values of parameters such as unknown costs. In the presentation a method called the Principle of Maximum Efficiency Estimation (MEE) is introduced. An application to the estimation of inventory cost parameters is given.