Relative weights: The weights assigned to the inputs and outputs
have managerial and analytic value. In DBA models discussed in
chapter 5, influencing these weights allows the manager to
substantially increase the DBA insights about ways to improve
performance.
The weights information has also been used for analytic purposes,
sometimes overestimating the information content of these
variables. For example, the values v^ = 1.429 for hours, V2 =
68 Sherman and Zhu
0.286 for other expenses define the slope of the line between B3
and B4 in Figure 2-1. The slope is -5, which is vi/v2. This has
been characterized as a rate of substitution suggesting that the
units operating in this segment of the efficient frontier, B3,B4
could substitute $5 of supplies for one teller hour. This describes
the slope of the actual line. There are some DBA user that will
interpret this slope as the actual rate of substitution or the
efficient rate of substitution for these inputs. If a manager were
planning to use these variables to derive rates of substitution,
careful testing and analysis of the results will be needed before
one can rely on these data in this way. At this point, it is sufficient
to caution users about misuse of this part of the DBA information.
We will clarify the issues in the next Chapter when we have a
more elaborate example to illustrate the potential value and
misuse of these weights.
We should also note that multiple optimal weights are very likely
to be present When we solve the DBA model, weights generated
by computer runs can be different from each other. We do not
recommend use optimal DBA weights (or multiplier) directly.
Relative weights: The weights assigned to the inputs and outputshave managerial and analytic value. In DBA models discussed inchapter 5, influencing these weights allows the manager tosubstantially increase the DBA insights about ways to improveperformance.The weights information has also been used for analytic purposes,sometimes overestimating the information content of thesevariables. For example, the values v^ = 1.429 for hours, V2 =68 Sherman and Zhu0.286 for other expenses define the slope of the line between B3and B4 in Figure 2-1. The slope is -5, which is vi/v2. This hasbeen characterized as a rate of substitution suggesting that theunits operating in this segment of the efficient frontier, B3,B4could substitute $5 of supplies for one teller hour. This describesthe slope of the actual line. There are some DBA user that willinterpret this slope as the actual rate of substitution or theefficient rate of substitution for these inputs. If a manager wereplanning to use these variables to derive rates of substitution,careful testing and analysis of the results will be needed beforeone can rely on these data in this way. At this point, it is sufficientto caution users about misuse of this part of the DBA information.We will clarify the issues in the next Chapter when we have amore elaborate example to illustrate the potential value andmisuse of these weights.We should also note that multiple optimal weights are very likelyto be present When we solve the DBA model, weights generated
by computer runs can be different from each other. We do not
recommend use optimal DBA weights (or multiplier) directly.
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