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20140506——CCR DEA MODEL
* CCR DEA MODEL * These are known as CCR (Charnes, Cooper, Rhodes, 1978) models. If the constraint is adjoined, they are known as BCC (Banker, Charnes, Cooper, 1984) models. This added constraint introduces an additional variable, μo, into the (dual) multiplier problems. This extra variable makes it possible to effect returns-to-scale evaluations (increasing, constant and decreasing). So the BCC model is also referred to as the VRS (Variable Returns to Scale) model and distinguished form the CCR model which is referred to as the CRS (Constant Returns to Scale) model. CCR DEA MODEL * CCR DEA MODEL * CCR DEA MODEL We now proceed to compare and contrast the input and output orientations of the CCR model. To illustrate the discussion to follow we will employ the example presented in Figure 1-1 consisting of five DMUs, labeled P1, …, P5, each consuming a single input to produce a single output. Figure 1-1. Example DMUs * The numbers in parentheses in Figure 1-1 are interpreted as coordinate values which correspond to the input and output of a DMUj represented as Pj, j = 1, …, 5. In each case the value on the left in the parentheses is the input and the value on the right is the output for the Pj alongside which these values are listed. CCR DEA MODEL Figure 1-1. Example DMUs * Table 1-2 contains optimal solution values for the five example DMUs for both of the dual LP problems of the CCR model. For example, to evaluate the efficiency of P5 (DMU5 in Table 1-2), we can solve the following input-oriented envelopment CCR model: which yields the values of θ*= 9/20, λ*2= ? and λ*j= 0 (j ≠ 2) (see the last twocolumns in the last row of the upper portion of Table 1-2). CCR DEA MODEL Copy * CCR DEA MODEL * Alternatively, we can solve the input-oriented multiplier CCR model, which yields z* = 9/20, μ*= 3/20 and ν*= 1/5. Hence we have θ*= z*. Moreover, with μ*= 3/20 and ν*= 1/5, this is also the value of h0(u*, v*) =[3×(3/20)]/[5×(1/5)] = 9/20 for
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