A new slacks-based measure of Malmquist-Luenberger index in the presence of undesirable outputs


In the majority of production processes, noticeable amounts of bad byproducts or bad outputs are produced. The negative effects of the bad outputs on efficiency cannot be handled by the standard Malmquist index to measure productivity change over time. Toward this end, the Malmquist-Luenberger index (MLI) has been introduced, when undesirable outputs are present. In this paper, we introduce a Data Envelopment Analysis (DEA) model as well as an algorithm, which can successfully eliminate a common infeasibility problem encountered in MLI mixed period problems. This model incorporates the best endogenous direction amongst all other possible directions to increase desirable output and decrease the undesirable outputs at the same time. A simple example used to illustrate the new algorithm and a real application of steam power plants is used to show the applicability of the proposed model.

Divisions: College of Business and Social Sciences > Aston Business School > Operations & Information Management
Additional Information: © 2014, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Publication ISSN: 1873-5274
Last Modified: 29 Nov 2023 10:55
Date Deposited: 05 Mar 2015 14:10
Full Text Link: 10.1016/j.omega.2014.08.006
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2015-03
Published Online Date: 2014-09-06
Authors: Arabi, Behrouz
Munisamy, Susila
Emrouznejad, Ali

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