The static Data Envelopment Analysis(DEA) model can hardly be applied to measure the managerial efficiency of a company if there exist no comparable or appropriate companies. Even if the static DEA models are applicable, the business unit wish effici...
The static Data Envelopment Analysis(DEA) model can hardly be applied to measure the managerial efficiency of a company if there exist no comparable or appropriate companies. Even if the static DEA models are applicable, the business unit wish efficiency value of 1.0 does not know the possibility of further improvement in its managerial efficiency. Previous research on the dynamic analysis and longitudinal section analysis methods indicates that a DEA model may he used in comparison of the dynamic efficiency in multiple periods for a single company. In this paper we suggest an improved approach to break such a tie-up situation: a dynamic efficiency comparison of a single company`s input and output factors for multiple periods using the DEA model. For a case study, we used managerial data of 30 pharmaceutical companies listed in Korea Stock Exchange. The static DEA model could check the efficiencies of the 30 companies. Among them, two companies showed the same static efficiency of 1.0. This means the two are the best and tie. Here, with proposed dynamic DEA approach. we found that one company had really achieved positive efficiency enhancement in dynamic sense, but the other could get more improved in terms of input and output factors.