Measurement of pro fit inefficiency in presence of interval data using the directional distance function

Document Type: Research Articles

Authors

Department of Mathematics , Science and Research Branch, Islamic Azad University,Tehran, Iran.

Abstract

In many applied programs in real-life problems, both physical inputs and out-
puts are heterogeneous which in this case the efficient cost and income model
can not apply to evaluate the cost and income of related turnover. So, a mea-
surement based on the directional value of pro t was presented which we have
developed it in this paper and have computed it for interval data. In fact, we
have measured the inefficiency of cost in the presence of interval data using the
directional distance function which is most meaningful for those companies
that their essential behavioral goals are maximizing the pro t with least am-
ambiguity. To this end, considering some branches of Tejarat bank in Iran, the
efficiency of profi t in presence of interval data is computed by means of the
distance directional function.