Weak efficiency means there does
not exist a point in the technology set which is better in every input and output. For
a weakly efficient point, an arbitrary small improvement suffices to become Koopmans-
efficient, whence the minAverage measure also quantifies the infimum average
of improvements which is necessary to become Koopmans efficient. It has neither a
straightforward price interpretation nor is it an indicator for Koopmans efficiency, but
it is units invariant.
Which model option will be applicable to which parameter depends primarily upon the
following:
1. the purpose of analysis, for example, for benchmarking, the output-oriented model will
be suited, whereas for cost monitoring, the input-oriented cost minimization model
can be more applicable; and
2. the availability of criterion data, for example, if there is no coinciding point in the
data spectrum where both input and output are getting better (a very likely scenario
with conflicting objective criteria as is the case of SLA parameters, e.g., QoS vs. cost),
then the minAverage model can be chosen.
Bandopadhyay & Kumar
Copyright ?© 2007, Idea Group Inc. Copying or distributing in print or electronic forms without written permission
of Idea Group Inc.
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