Journal of Operational Research and Its Applications ( Applied Mathematics ) - Lahijan Azad University

Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

---

For economists, analyzing the impact of minor changes some throughputs and their effects on other throughputs is of great interest. This issue is recognized within the framework of data envelopment analysis (DEA) as marginal rates (MR) and plays a pivotal role in economic theory and applications. In this paper, we extend a developed DEA methodology for profitability analysis to incorporate marginal rate settings. To observe the effect of a partial change in one throughput on other throughputs, we introduce a binary variable. This allows us to present an extended method for determining marginal rates, capable of identifying the most suitable input or output for alteration in a single step. Subsequently, utilizing the concept of profitability in DEA, we illustrate how a profitable unit can retain its profitability. The analysis of the M.MR (Mixed Marginal Rate) approach to investigate the effect of a small change of one throughput on other throughput for an efficient unit is shown with a case study.

Keywords: Data Envelopment Analysis, Marginal Rate, Profitability, Throughput

Full-Text [PDF 742 kb]   (110 Downloads)    

Add your comments about this article : Your username or Email:

---

---