Model Perspective

Oct 1, 2022 · Operations

How Variable Returns to Scale DEA Reveals Input/Output Slack in a Two‑Stage Model

This article explains how variable‑returns‑to‑scale input‑oriented and output‑oriented DEA models use input and output slacks, introduces a two‑stage linear programming approach to identify non‑zero slacks, and defines full and weak efficiency through formal DEA definitions and illustrative decision‑unit examples.