This paper shows that the Sueyoshi and Chang [Ops. Res. Lett. 8, 205-2
13 (1989)] remedy for Charnes et al. [Socio-Econ. Planning Sci. 16, 22
3-224 (1982); Ops Res. Lett. 2, 101-103 (1983)] multiplicative (or log
) efficiency measure is not unit invariant, and Banker and Maindiratta
's [Mgmt Sci. 32, 126-135 (1986)] approach should use positive-multipl
ier loglinear production frontiers to evaluate decision-making-units (
DMUs). The paper also proposes a distance-oriented efficiency measure:
the distance efficiency measure, which for the case of constant outpu
t and the case of linearly homogeneous production technology is unit i
nvariant.