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System efficiency evaluation of homogeneous parallel production systems: An aggregation approach

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  • Prabhat Ranjan
  • Sanjeet Singh

Abstract

Existing models, for efficiency evaluation of DMUs with homogeneous parallel production-units, have limitations in the sense that production process of a DMU is compared with the production possibility set of all production-units. Moreover, same set of input-output weights is used to evaluate the efficiency, project inputs-outputs of a DMU and all its production-units. This means, all the production-units of a DMU operate in a similar way in the long run as if they are not separate production-units but one single entity. We propose an aggregation approach to evaluate the efficiency of DMUs with homogeneous parallel production-units. We also introduce Weighted Average Efficiency and System Efficiency. As opposed to the existing methodology, different set of weights are used to evaluate efficiency of different production-units of a DMU. Finally, the proposed methodology has been used to evaluate the efficiency of higher education sector of Bihar, one of the largest states in India.

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  • Prabhat Ranjan & Sanjeet Singh, 2020. "System efficiency evaluation of homogeneous parallel production systems: An aggregation approach," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 71(2), pages 346-361, February.
    • Handle: RePEc:taf:tjorxx:v:71:y:2020:i:2:p:346-361
    DOI: 10.1080/01605682.2018.1535770
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    Cited by:

    1. Mishra, Neelesh Kumar & Chakraborty, Abhishek & Singh, Sanjeet & Ranjan, Prabhat, 2023. "Efficiency analysis of engineering colleges in India: Decomposition into parallel sub-processes systems," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).

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