A comment on “Returns to scale and scale elasticity in data envelopment analysis”

Fukuyama [Fukuyama, H., 2000. Returns to scale and scale elasticity in data envelopment analysis. European Journal of Operational Research 125, 93–112] provided some characterizations of scale elasticity and returns to scale in DEA. In this paper, we present some counterexamples and comments to the main lemma of the afore-mentioned paper, based on which Fukuyama’s idea has been built.     

A note on Fukuyama (2000)

This brief note discusses Fukuyama’s paper [Fukuyama, H., 2000. Returns to scale and scale elasticity in data envelopment analysis. European Journal of Operational Research 125, 93–112]. We prove that the Proof of Lemma 1 by Fukuyama (2000) is incorrect due to incorrect substitution. In addition, we exemplify our conclusion by a counterexample taken from Fukuyama (2000). Thus all conclusions, based on Lemma 1, of Fukuyama (2000) cannot be reached and are left for further research.     

Super-efficiency DEA in the presence of infeasibility: One model approach

A two-stage procedure is developed by Lee et al. (2011) [European Journal of Operational Research doi:10.1016/j.ejor.2011.01.022] to address the infeasibility issue in super-efficiency data envelopment analysis (DEA) models. We point out that their two-stage procedure can be solved in a single DEA-based model.     

Reply to the note on article “The evidential reasoning approach for multiple attribute decision analysis using interval belief degrees”

In a very recent note by Gao and Ni [B. Gao, M.F. Ni, A note on article “The evidential reasoning approach for multiple attribute decision analysis using interval belief degrees”, European Journal of Operational Research, in press, doi:10.1016/j.ejor.2007.10.0381], they argued that Yen’s combination rule [J. Yen, Generalizing the Dempster–Shafer theory to fuzzy sets, IEEE Transactions on Systems, Man and Cybernetics 20 (1990) 559–570], which normalizes the combination of multiple pieces of evidence at the end of the combination process, was incorrect. If this were the case, the nonlinear programming models we proposed in [Y.M. Wang, J.B. Yang, D.L. Xu, K.S. Chin, The evidential reasoning approach for multiple attribute decision analysis using interval belief degrees, European Journal of Operational Research 175 (2006) 35–66] would also be incorrect. In this reply to Gao and Ni, we re-examine their numerical illustrations and reconsider their analysis of Yen’s combination rule. We conclude that Yen’s combination rule is correct and our nonlinear programming models are valid.     

A comment on “cost efficiency in data envelopment analysis with data uncertainty”

In a recent paper by Mostafaee and Saljooghi [Mostafaee, A., Saljooghi, F.H., 2010. Cost efficiency in data envelopment analysis with data uncertainty. European Journal of Operational Research, 202, 595–603], the authors extend the classical cost efficiency model to address data uncertainty. They claim that the upper bound of the cost efficiency can be obtained at extreme points when the input prices appear in the form of ranges. In this paper, we present our counterexamples and comments on the contention by Mostafaee and Saljooghi.     

Some comments on “A simple method to compute economic order quantities”

In this note, we emphasize that the arithmetic–geometric-mean-inequality approach proposed by Teng [Teng, J.T., 2008. A simple method to compute economic order quantities. European Journal of Operational Research. doi:10.1016/j.ejor.2008.05.019] is not a general solution method. Teng’s approach happens to work and give the correct results when the two terms in an objective function are any functions such that their product is a constant. The classical EOQ model works fine since the product of the two terms is indeed a constant! When the product is not a constant, Teng’s approach is of little use. This is exemplified in Comment 1 via solving the EOQ model with complete backorders (where the model is regarded as having two decision variables). Comment 2 is generally valid for an algebraic method when it is used to solve an objective function with two decision variables.     

On alternative optimal solutions in the estimation of returns to scale in DEA

Zhu and Shen [European Journal of Operational Research 81 (1995) 590] show that alternative optimal solutions in the estimation of returns to scale (RTS) are caused by a particular linear dependency among a set of extreme efficient DMUs when one employs the concept of most productive scale size [European Journal of Operational Research 17 (1984) 35] in data envelopment analysis (DEA). This paper demonstrates that the presence of weakly efficient DMUs may also lead to alternative optima and extends the results of Zhu and Shen to the entire frontier. Necessary and sufficient conditions for the presence of multiple optimal solutions for constant returns to scale (CRS) DMUs are established.     

Comment on “A new clustering approach using data envelopment analysis”

In a recent paper Po, Guh and Yang [Po, R.-W., Guh, Y.-Y., Yang, M.-S., 2009. A new clustering approach using data envelopment analysis. European Journal of Operational Research 199, 276–284] propose a new algorithm for forming clusters from the results of a DEA analysis. In this comment it is explained that the algorithm only generates information that is readily available from the usual DEA results.     

Directional distance functions and slacks-based measures of efficiency

In this paper we introduce a SBM (slacks-based measure) of efficiency based on directional distance functions. This measure is contrasted with the SBM due to Professor Tone [Tone, K., 2001. A slacks-based measure of efficiency in data envelopment analysis. European Journal of Operational Research 130, 498–509].     

A discussion on “A bivariate optimal replacement policy for a repairable system”

In this short paper, a bivariate optimal replacement policy for a repairable system with a geometric process maintenance model is discussed. Zhang [Zhang, Y.L., 1994. A bivariate optimal replacement policy for a repairable system. Journal of Applied Probability 31, 1123–1127] and Sheu [Sheu, S.H., 1999. Extended optimal replacement model for deteriorating systems. European Journal of Operational Research 112, 503–516] obtained different expression of the long-run average cost per unit time (i.e. average cost rate) of the system respectively. We show that both of their results are correct, therefore, Sheu’s comment (1999) on the result of Zhang (1994) is wrong.     

Single-machine scheduling against due dates with past-sequence-dependent setup times

Recently Koulamas and Kyparisis [Koulamas, C., Kyparisis, G.J., in press. Single-machine scheduling with past-sequence-dependent setup times. European Journal of Operational Research] introduced past-sequence-dependent setup times to scheduling problems. This means that the setup time of a job is proportionate to the sum of processing times of the jobs already scheduled. Koulamas and Kyparisis [Koulamas, C., Kyparisis, G.J., in press. Single-machine scheduling with past-sequence-dependent setup times. European Journal of Operational Research] were able to show for a number of single-machine scheduling problems with completion time goals that they remain polynomially solvable. In this paper we extend the analysis to problems with due dates. We demonstrated that some problems remain polynomially solvable. However, for some other problems well-known polynomially solution approaches do not guarantee optimality any longer. Consequently we concentrated on finding polynomially solvable special cases.     

Developing new formulations and relaxations of single stage capacitated warehouse location problem (SSCWLP): Empirical investigation for assessing relative strengths and computational effort

In literature, single/multistage warehouse location problems have been attempted by Geoffrion and Graves [A.M. Geoffrion, G.W. Graves, Multicommodity distribution system design by Benders decomposition, Management Science 2 (1974) 82–114] and Sharma [R.R.K. Sharma, Modeling a fertilizer distribution system, European Journal of Operational Research 51 (1991) 24–34] among others and they have given completely different formulations. We use the formulation style given by Sharma and Sharma [R.R.K. Sharma, K.D. Sharma, A new dual based procedure for the transportation problem, European Journal of Operational Research 122 (3) (2000) 96–109] to develop variety of constraints that link real and 0–1 integer variables; thus developing many formulations of single stage capacitated warehouse location problem (SSCWLP). We relax the integer constraints on 0–1 variables to obtain their relaxations.     

On classifying inputs and outputs in DEA: A revised model

Cook and Zhu [Cook, W.D., Zhu, J., 2007. Classifying inputs and outputs in data envelopment analysis. European Journal of Operational Research 180, 692–699] introduced a new method to determine whether a measure is an input or an output. In practice, however, their method may produce incorrect efficiency scores due to a computational problem as result of introducing a large positive number to the model. This note introduces a revised model that does not need such a large positive number.     

Universal elements in some classes of mappings and classes of G-spaces

In the present paper it is proved the existence of topologically universal elements in some classes of mappings and classes of G-spaces generalizing some results from [S.D. Iliadis, Universal Spaces and Mappings, North-Holland Math. Stud., vol. 198, Elsevier, 2005] and [S.D. Iliadis, Universal Borel mappings and Borel actions of groups, Topology Appl., in press, doi:10.1016/j.topol.2007.05.029].     

Universal elements in some classes of mappings and classes of G-spaces

In the present paper it is proved the existence of topologically universal elements in some classes of mappings and classes of G-spaces generalizing some results from [S.D. Iliadis, Universal Spaces and Mappings, North-Holland Math. Stud., vol. 198, Elsevier, 2005] and [S.D. Iliadis, Universal Borel mappings and Borel actions of groups, Topology Appl., in press, doi:10.1016/j.topol.2007.05.029].     

A linear programming framework for free disposal hull technologies and cost functions: Primal and dual models

The free disposal hull (FDH) model, introduced by Deprins et al. [The Performance of Public Enterprises Concepts and Measurements, Elsevier, 1984], is based on a representation of the production technology given by observed production plans, imposing strong disposability of inputs and outputs but without the convexity assumption. In its traditional form, the FDH model assumes implicitly variable returns to scale (VRS) and the model was solved by a mixed integer linear program (MILP). The MILP structure is often used to compare the FDH model to data envelopment analysis (DEA) models although an equivalent FDH LP model exists (see Agrell and Tind [Journal of Productivity Analysis 16 (2) (2001) 129]). More recently, specific returns to scale (RTS) assumptions have been introduced in FDH models by Kerstens and Vanden Eeckaut [European Journal of Operational Research 113 (1999) 206], including non-increasing, non-decreasing, or constant returns to scale (NIRS, NDRS, and CRS, respectively). Podinovski [European Journal of Operational Research 152 (2004) 800] showed that the related technical efficiency measures can be computed by mixed integer linear programs. In this paper, the modeling proposed here goes one step further by introducing a complete LP framework to deal with all previous FDH models.     

Additive efficiency decomposition in two-stage DEA

Kao and Hwang (2008) [Kao, C., Hwang, S.-N., 2008. Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan. European Journal of Operational Research 185 (1), 418–429] develop a data envelopment analysis (DEA) approach for measuring efficiency of decision processes which can be divided into two stages. The first stage uses inputs to generate outputs which become the inputs to the second stage. The first stage outputs are referred to as intermediate measures. The second stage then uses these intermediate measures to produce outputs. Kao and Huang represent the efficiency of the overall process as the product of the efficiencies of the two stages. A major limitation of this model is its applicability to only constant returns to scale (CRS) situations. The current paper develops an additive efficiency decomposition approach wherein the overall efficiency is expressed as a (weighted) sum of the efficiencies of the individual stages. This approach can be applied under both CRS and variable returns to scale (VRS) assumptions. The case of Taiwanese non-life insurance companies is revisited using this newly developed approach.     

A note on deriving decision rules to locate export containers in container yards

A counterexample is given to illustrate that a key model transformation in the paper entitled “Deriving decision rules to locate export containers in container yards” [Kim, K.H., Park, Y.M., Ryu, K.-R., 2000. Deriving decision rules to locate export containers in container yards. European Journal of Operational Research 124 (1), 89–101] is not correct. Then, the errors in the original derivation of the model transformation are analyzed, and the correct form is presented.     

DEA congestion and returns to scale under an occurrence of multiple optimal projections

Economic implications of congestion have been recently discussed in many DEA (data envelopment analysis) studies. In addition, several previous research efforts have explored a theoretical linkage between returns to scale (RTS) and the concept of congestion, because the two economic concepts are closely connected to each other. Tone and Sahoo [Tone, K., Sahoo, B.K., 2004. Degree of scale economies and congestion: A unified DEA approach. European Journal of Operational Research 158, 755–772] have published the theoretical linkage in this journal. All of the previous studies, including their research (2004), assume a unique optimal solution in the investigation on DEA-based congestion. When multiple solutions occur in DEA-based congestion measurement, the economic implications of congestion obtained from the previous research are all problematic from both theoretical and practical perspectives. To deal with the issue, this study explores how to deal with the occurrence of multiple solutions in the DEA-based congestion measurement. This study proposes a new approach for the congestion measurement and theoretically compares the proposed approach with Tone and Sahoo (2004).