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There is no reason to assume the all operational districts will be operating at optimal scale and so both variable (VRS) as well as constant returns to scale (CRS) DEA efficiency scores are computed.
It can also be noted that some of the hospitals that were found to be operating at optimal scale were technically inefficient because of using too much of some input or inputs.
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The FuelBands entered our lives as part of an experiment I decided to conduct in the name of self-betterment: a two-month immersion into the curious, ever-expanding world of gear and gadgets and socially networked apps designed to ensure that your body is operating at optimal frequency — and then broadcast that frequency to the world.
A scale efficiency score of one implies that the hospital in question is operating at optimal scale or size.
A VRS model was chosen because it was not expected that all SDUs were operating at optimal scale.
Under CRS, it is expected that units are operating at optimal scale and changes in input should generate a proportional change in outputs.
Our results further show that only 4 (13%) out of 30 hospitals were operating at optimal plant size, though many others are operating very close to their optimal size (Table 6).
Variable returns to scale were considered since all the NGOs may not be operating at an optimal scale.
VRS might be preferred if the interest is on the extent to which the scale of operations affects productivity or when not all units of analysis are considered to be operating at an optimal scale.
While under VRS, it is assumed that all units may not be operating at their optimal scale and so their TE score is compared against other units of the same size.
Dynamic insight is key to design suitable control schemes to ensure that this process can be operated at near optimal conditions, while maximizing CO2 recovery and meeting product quality requirements.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com