Measuring the Efficiency of Water Supply Service: Application of Charnes, Cooper Rhodes and Slack-Based Measure Models

Abstract

Measuring the efficiency of water supply services is very important, as the demands for water supply are increasing as the year goes by due to increasing population and development. Improving the efficiency of water supply services is also an economically viable way for water conservation. This paper examines the efficiency of water supply services using Charnes, Cooper, and Rhodes (CCR) output-oriented and Slack-Based Measure (SBM) models. SBM provides the input excesses and output shortfalls for the concerned decision-making units (DMUs). Meanwhile, the CCR output-oriented model interprets the efficiency by maximising the output produced by the DMUs whilst maintaining the input used. The results indicate that the optimal efficiency value for SBM model is lower than the optimal efficiency value of the CCR model. Furthermore, the SBM model provides the water supply providers with values for input excess and output shortfalls for future improvements.