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Developing a neutral slacks-based measure for production line selection

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  • Majid Azadi
  • Reza Farzipoor Saen

Abstract

Production line selection has a strategic importance for every company. One of the techniques that can be used for selecting production line is data envelopment analysis (DEA). Traditional DEA models such as Charnes-Cooper-Rhodes and Banker-Charnes-Cooper can only measure radial efficiency (weak efficiency). To measure strong efficiency in DEA, Tone (2001) proposed slacks-based measure (SBM). This model deals directly with the input excesses and output shortfalls. The objective of this paper is to propose a neutral SBM for selecting the best production line. A case study demonstrates the application of the proposed model.

Suggested Citation

  • Majid Azadi & Reza Farzipoor Saen, 2012. "Developing a neutral slacks-based measure for production line selection," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 15(4), pages 359-370.
    • Handle: RePEc:ids:ijores:v:15:y:2012:i:4:p:359-370
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