Abstract
This paper proposes an approach to maintaining unit efficiency (cost efficiency) under any fluctuation in input costs. It can accommodate situations where the level of influence over costs ranges from minimal to considerable. For this purpose, a two-step procedure is applied: First, finding the convex cone. It is formed by the intersection of convex cones themselves created from comparing the new input costs of the efficient unit and the extreme efficient units which are adjacent to it in the first quadrant. Second, finding the subset that maintains the unit efficient in the presence of annual inflation. The procedure is demonstrated by an algorithm and a working example. Finally, it is illustrated via application to a real case in sugar industries.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
