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http://dx.doi.org/10.7232/iems.2012.11.3.224

A Tradeoff between Customer Efficiency and Firm Productivity in Service Delivery Systems  

Trinh, Truong Hong (Industrial and Manufacturing Engineering, Asian Institute of Technology)
Kachitvichyanukul, Voratas (Industrial and Manufacturing Engineering, Asian Institute of Technology)
Luong, Huynh Trung (Industrial and Manufacturing Engineering, Asian Institute of Technology)
Publication Information
Industrial Engineering and Management Systems / v.11, no.3, 2012 , pp. 224-232 More about this Journal
Abstract
The paper proposes a non-parametric methodology, data envelopment analysis, for measuring efficiency and productivity in service delivery systems with capacity constraints. The methodology provides allocation approaches for studying behaviors of firm and customers in service delivery strategy. The experimental study is carried out to investigate allocation behaviors and conduct an objective tradeoff between efficiency approach and productivity approach. The experimental result indicates that the efficiency approach allocates resource via maximizing customer efficiency rather than firm productivity as in the productivity approach. Moreover, the experiment reveals that there exists an objective tradeoff between the efficiency approach and the productivity approach. These findings provide strategic options for allocation policy in service delivery systems.
Keywords
DEA Method; Customer Efficiency; Firm Productivity; Malmquist TFP Index; Service Delivery System;
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