Document Type
Article
Publication Date
2014
Abstract
Stochastic Data Envelopment Analysis (DEA) models have been introduced in the literature to assess the performance of operating entities with random input and output data. A stochastic DEA model with a reliability constraint is proposed in this study that maximizes the lower bound of an entity's efficiency score with some pre-selected probability. We define the concept of stochastic efficiency and develop a solution procedure. The economic interpretations of the stochastic efficiency index are presented when the inputs and outputs of each entity follow a multivariate joint normal distribution.
Recommended Citation
Wei, Guiwu; Chen, Jian; and Wang, Jiamin, "Stochastic Efficiency Analysis with a Reliability Consideration" (2014). Faculty of Management Publications. 1.
https://digitalcommons.liu.edu/post_mangpub/1