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Evaluation of Benchmark Information with Least-distance Measurement Model for Non-convex Frontiers and Petri Net
Data Envelopment Analysis (DEA) is efficient analysis for similar decision making units (DMUs). It provides a ranking of DMUs relative to each other. DAE in addition to determining efficiency level, provides situations for removing inefficiency by using evaluated benchmark information. The Least-Distance Measurement model is proposed in order to shifting inefficiency to the nearest efficient unit which may not applied in real-world problems about convex technology (i.e., the convexity of the production probability function); thus, expanding DEA to non-convexity technology would be improved the potential of applying the Least-Distance Measurement model. This paper proposes extension of Least-Distance Measurement model in non-convexity technology and we will explore Petri Nets for modeling a leastdistance measurement in non-convex space.
Keywords
Data Envelopment Analysis, Least Distance, FDH, Benchmarking
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