Slack Based Model for Enterprises’ Efficiency Improvement

Abstract

The paper proposes to improve the enterprises’ efficiency of the heat supply system based on Data Envelopment Analysis (DEA). This is a non-parametric method of mathematical programming. The DEA increases the efficiency of the enterprises under study by optimizing the use of resources, as well as minimizing environmental damage from production. The study considers the Slack Based Model (SBM) of the DEA mathematical programming method. The peculiarities of its application are described. It covers main differences in other DEA models. The proposed model is applied to enterprises of the heat supply system. Combined heat and power plants (CHP) are enterprises of the studied sample. In the course of the study, inputs and outputs indicators of the enterprises of the studied sample were optimized in accordance with the main trends in the environmental safety of such enterprise’s operation. The CHPP efficiency is calculated in accordance with the minimization of harmful substances emissions into the environment. Experiments were carried out for calculating efficiency indicators applying the SBM model of the DEA method. Calculations for the Charnes, Cooper and Rhodes model (CCR) and Banker, Charnes and Cooper (BCC) models are also presented for comparison. It also presents calculations of inputs and outputs indicators to achieve maximum enterprises’ efficiency of the studied sample.

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Publication Date

27 February 2023

eBook ISBN

978-1-80296-960-3

Publisher

European Publisher

Volume

1

Print ISBN (optional)

-

Edition Number

1st Edition

Pages

1-403

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Cite this article as:

Pokushko, M., Medina-Bulo, I., Kuzmich, R., Pokushko, R., Karaseva, M., & Dubovik, N. (2023). Slack Based Model for Enterprises’ Efficiency Improvement. In P. Stanimorovic, A. A. Stupina, E. Semenkin, & I. V. Kovalev (Eds.), Hybrid Methods of Modeling and Optimization in Complex Systems, vol 1. European Proceedings of Computers and Technology (pp. 351-356). European Publisher. https://doi.org/10.15405/epct.23021.43