Tag: measuring returns to scale with dea

Slacks based measure or SBM analsysis is a non-radial model to solve the problem in the “additive model” developed by Charnes, Cooper, & Rhodes in 1978. This model can discriminate between efficient and inefficient Decision-Making Units (DMU).

This is the continued article of the interpretations for variable returns to scale (VRS) from the last article. However, this article is about the summary of peers and the rest of the analysis conducted for VRS-DEA (Data envelopment analysis).

Variable returns to scale (VRS) is a type of frontier scale used in data envelopment analysis (DEA). It helps to estimate efficiencies whether an increase or decrease in input or outputs does not result in a proportional change in the outputs or inputs respectively (Cooper, Seiford, & Zhu, 2011).

The previous article depicts the analysis and interpretation of the Input oriented multi-staged constant returns to scale (CRS). Output oriented multi-staged Constant returns to scale data envelopment analysis (CRS-DEA) is, however, based on a different principle.

The findings for Multi-stage based CRS are analyzed and presented. The interpretations are on the basis of input-oriented multi-staged CRS DEA analysis.