Piecewise Linear Revenue efficiency evaluation

Because of the importance of energy resources, optimizing the energy consumption is one of the most frequently studied problems in the field of operations research. Energy suppliers increase the sale prices when their production increases. Classical Data Envelopment analysis (DEA) models do not take these increases into consideration. The current paper evaluates the revenue efficiency of the DMUs with different prices using piecewise linear functions. A real case on power plants is given to show the applicability of the proposed approach.

Keywords:

Data envelopment analysis , Revenue efficiency , Piecewise linear function