BCC- and CCR-efficiencies under monoradial and biradial scaling
A. Kleine
A. Dellnitz
W. Rödder
Wissenschaftliche Vorträge
Anwendungen des Operations Research
EURO2018 - 29th European Conference on Operational Research, 8. - 11. Juli 2018, Valencia

The CCR model by Charnes, Cooper, and Rhodes (1978)together with the BCC model by Banker, Charnes, and Cooper (1984) are the most popular approaches of measuring efficiency among a group of decision making units (DMUs) in data envelopment analysis (DEA). The choice of a DEA model - CCR or BCC - often, if not always, is a difficult decision. To evaluate a DMU’s efficiency for both models might be helpful, but it does not always capture the essential issues at stake. In the presentation we propose a comparative analysis of both concepts: How does activity scaling under constant BCC-efficiency influence CCR-efficiency. And inversely, how does BCC-efficiency behave when activity scaling under constant CCR-efficiency is applied. Such findings of mutual effects improve a DMU’s ability to reassess upsizing and downsizing of activities. We provide optimization models for calculating these adjustments and respective stability ranges and this for both efficient as well as inefficient activities. Finally, scale efficiency turns out to be the ideal concept to control the seactivity changes, rather than just CCR- or BCC-efficiency. A numerical example illustrates the concept.

Steffen Hoffmann | 10.05.2024