EFFICIENCY MEASUREMENT OF PRODUCTION OPERATIONS UNDER UNCERTAINTY

This paper focuses on the non-parametric efficiency measurement of pro duction operations under uncertainties. The authors extend the existin g data envelopment analysis method to deal with inputs and outputs sub ject to random disturbances. They propose a new approach to performanc e evaluation using certainty equivalence of utility functions, which c an accommodate decision maker's risk attitude. They also formulate app ropriate models to implement these approaches.