model_fdh function

Free disposal hull (FDH) model.

FDH model allows the free disposability to construct the production possibility set. The central feature of the FDH model is the lack of convexity for its production possibility set (Thrall, 1999).

model_fdh(datadea,
          fdh_modelname = c("basic"),
          ...)

Arguments

• datadea: A deadata object, including DMUs, inputs and outputs.
• fdh_modelname: A string containing the name of the model to apply FDH. For now, only "basic" is available.
• ...: dmu_eval, dmu_ref, orientation and other model parameters. Parameters like rts, max_slack and returnlp are ignored.

Examples

# Example 1. FDH input-oriented.
# Replication of results in Sanei and Mamizadeh Chatghayeb (2013)
data("Supply_Chain")
data_fdh1 <- make_deadata(Supply_Chain, 
                          inputs = 2:4, 
                          outputs = 5:6)
result <- model_fdh(data_fdh1) # by default orientation = "io"
efficiencies(result)

# Example 2. FDH output-oriented.
# Replication of results in Sanei and Mamizadeh Chatghayeb (2013)
data("Supply_Chain")
data_fdh2 <- make_deadata(Supply_Chain, 
                          inputs = 5:6, 
                          outputs = 7:8)
result2 <- model_fdh(data_fdh2, 
                    orientation = "oo")
efficiencies(result2)

References

Cherchye, L.; Kuosmanen, T.; Post, T. (2000). "What Is the Economic Meaning of FDH? A Reply to Thrall". Journal of Productivity Analysis, 13(3), 263–267.

Deprins, D.; Simar, L. and Tulkens, H. (1984). Measuring Labor-Efficiency in Post Offices. In M. Marchand, P. Pestieau and H. Tulkens (eds.), The Performance of Public Entreprises: Concepts and Measurement. Amsterdam: North-Holland.

Sanei, M.; Mamizadeh Chatghayeb, S. (2013). “Free Disposal Hull Models in Supply Chain Management”, International Journal of Mathematical Modelling and Computations, 3(3), 125-129.

Thrall, R. M. (1999). "What Is the Economic Meaning of FDH?", Journal of Productivity Analysis, 11(3), 243–50.

Author(s)

Vicente Coll-Serrano (vicente.coll@uv.es ). Quantitative Methods for Measuring Culture (MC2). Applied Economics.

Vicente Bolós (vicente.bolos@uv.es ). Department of Business Mathematics

Rafael Benítez (rafael.suarez@uv.es ). Department of Business Mathematics

University of Valencia (Spain)