CHAPTER 21
Performance Measurement Using Data Envelopment Analysis
Let us take the case of railroad companies for demonstrating the measurement of productivity and efficiency using the Operations Research technique known as Data Envelopment Analysis (DEA).
Railroad companies around the world transport either freight or passenger or both. The output of railroad companies is measured in terms of ton-kilometres (freight weighing a ton transported over a kilometre) for freight traffic and passenger-kilometres (a passenger transported over a kilometre) for passenger traffic.
Performance or the efficiency of transformation is measured in terms of units of output produced by a unit of input (given by Let us consider the manpower employed in the railroad ...
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