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Measuring Performance in a Multiproduct Firm: An Application to the U.S. Postal Service

Author

Listed:
  • Michael D. Bradley

    (George Washington University, Washington, D.C.)

  • Donald M. Baron

    (Arthur D. Little, Washington, D.C.)

Abstract

Measuring performance in a multiproduct firm is difficult because of the complex nature of the firm's output. We present an approach to measuring performance, called operating efficiency which is the ratio of aggregate output to aggregate resource use. We describe how to calculate operating efficiency for a multiproduct organization and demonstrate how it can be used to understand why performance varies across plants and/or through time. Our application of operating efficiency to the U.S. Postal Service is discussed along with the reactions of potential users.

Suggested Citation

  • Michael D. Bradley & Donald M. Baron, 1993. "Measuring Performance in a Multiproduct Firm: An Application to the U.S. Postal Service," Operations Research, INFORMS, vol. 41(3), pages 450-458, June.
    • Handle: RePEc:inm:oropre:v:41:y:1993:i:3:p:450-458
    DOI: 10.1287/opre.41.3.450
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    Cited by:

    1. Kruse, Jörn & Liebe, Andreas, 2005. "Netzzugang und Wettbewerb bei Briefdiensten," HWWA Reports 257, Hamburg Institute of International Economics (HWWA).
    2. Kruse, Jorn & Liebe, Andreas, 2005. "Netzzugang und Wettbewerb bei Briefdiensten," Report Series 26063, Hamburg Institute of International Economics.
    3. Blagojević, Mladenka & Ralević, Predrag & Šarac, Dragana, 2020. "An integrated approach to analysing the cost efficiency of postal networks," Utilities Policy, Elsevier, vol. 62(C).
    4. Kim, Kyungmin, 2018. "Multiproduct competition in a North-South model with technological differences," International Review of Economics & Finance, Elsevier, vol. 54(C), pages 262-273.

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