Chapter 8 Estimating production frontier shifts: An application of DEA to technology assessment

Evaluating the separate impacts of factors which affect the productive efficiency of organizations is difficult. This is because the impact of a factor is often contingent on other organizational, managerial or environmental characteristics. Standard econometric methods are limited in their ability to discriminate between efficient and inefficient units, and often impose considerable structure in parametrically specified functional forms. We show how a nonparametric data envelopment approach can be employed to focus on the best that can be achieved, with and without the key characteristic of interest. We illustrate the approach with real data from the service sector requiring the evaluation of the impact of a new information technology. The analytical technique estimates the annual savings in materials cost for an average store using the information technology to be over $4,000 (2.04% of materials cost), well in excess of the amortized annual cost for its installation. Establishing the separation in the production frontier in different regions, we show that the information technology had a substantially larger impact for the bigger stores. The savings were about 80% greater in the larger volume stores than in the smaller volume operations, an important consideration in setting the priorities for installation. The illustration underscores the flexibility of DEA in detecting different impacts of a new technology in different environments.     

基于DEA模型的装备费用-效能分析

结合装备费用效能分析的特性,利用数据包络分析法(DEA)对装备费用效能决策方案进行评价.通过计算和处理,得到不同方案的有效程度并制定相应调整措施.数据包络析在对装备费用效能分析中具有很强的适用性,且具有广泛的应用价值.     

Cost-effective production policy for a stochastic unreliable manufacturing system

^** Email: dohi{at}rel.hiroshima-u.ac.jp The paper deals with an economic manufacturing quantity (EMQ)problem for an unreliable manufacturing system in both continuous-and discrete-time settings. The time to machine failure andcorrective and preventive repair times of the production facilityare assumed to follow arbitrary probability distributions. Thetraditional method of determining the EMQ policy for a failure-pronemanufacturing system is based on the minimization of the long-runaverage cost in the steady state. In this paper, an alternativecriterion of optimality called cost effectiveness is introduced.The criteria for the existence and uniqueness of the optimalproduction time maximizing the cost effectiveness are derivedanalytically under general failure and specific repair (correctiveand preventive) time distributions. The optimal cost-effectiveand average cost production policies are numerically calculatedand compared in terms of their performances.     

Systemic cost-effectiveness analysis of food hazard reduction – Campylobacter in Danish broiler supply

An integrated microbiological–economic framework for policy support is developed to determine the cost-effectiveness of alternative intervention methods and strategies to reduce the risk of Campylobacter in broilers. Four interventions at the farm level and four interventions at the processing stage are considered. Cost analyses are conducted for different risk reduction targets and for three alternative scenarios concerning the acceptable range of interventions. Results demonstrate that using a system-wide policy approach to risk reduction can be more cost-effective than a policy focusing purely on farm-level interventions. Allowing for chemical decontamination methods may enhance cost-effectiveness of intervention strategies further.     

A receding horizon control approach for integrated vector management of Aedes aegypti using chemical and biological control: A mono and a multiobjective approach

This paper addresses an integrated vector management (IVM) approach for combating Aedes aegypti, the transmission vector of dengue, zika, and chikungunya diseases, some of the most important viral epidemics worldwide. In order to tackle this problem, a receding horizon control (RHC) strategy is adopted, considering a mono-objective and a multiobjective version of the optimal control model of combating the mosquito using chemical and biological control. RHC is essentially a suboptimal scheme of classical optimal control strategies considering discrete-time approximations. The integrated vector control actions used in this work consist in applying insecticides and inserting sterile males produced by irradiation in the population of mosquitoes. The cost function is defined in terms of social and economic costs, in order to quantify the effectiveness of the proposed epidemiological control throughout a time window of 4 months. Numerical simulations show that the obtained results are better than those from the optimal control strategies found in literature. Furthermore, through the application of the multiobjetive approach, varying the scenarios in the mono-objective formulation is no longer necessary and a set of optimal strategies can be obtained at once. Finally, in order to help health authorities in the choice of the best solution of the Pareto-optimal set to be implemented in practice, a cost-effectiveness analysis is performed and a strategy representing the most cost-effective control policy is obtained.