[00254] Estimation of Directional Marginal Productivity in Supply Chain Capacity Planning and Resource Allocation: A Case Study of the Power Industry
Session Time & Room : 3C (Aug.23, 13:20-15:00) @D502
Type : Industrial Contributed Talk
Abstract : Marginal productivity (MP) estimation is utilized to plan for maximum output levels and to allocate resources to address fluctuating demand for fuel in the power plant sector as well as adjust the power generated in the transmission and distribution lines. It also adjusts the amount of energy produced in the transmitter and distributor lines. In this paper, a data envelopment analysis (DEA) model is introduced for estimating the directional marginal productivity (DMP) of supply chain divisions. This model measures efficiency by maximizing the marginal profit for multiple outputs in predetermined directions. The purpose of this study is to establish whether adding an extra unit of input or reallocating resources can have significant effects on economic return.
