Cost and revenue efficiency models for heterogeneous inputs and outputs in data envelopment analysis

In the realm of data envelopment analysis (DEA), the crucial concern is to gauge the efficiency of firms that are differentiated by their inputs and outputs, and the prices associated with them. Traditional DEA operates under the assumption that all inputs and outputs are quantifiable as real numbers. However, this may not be a valid assumption in practical settings where integer variables and parameters are required. In this study, we explore three distinct models of cost and revenue efficiency that are suitable for situations where production possibilities are limited to integer values. We compare these models by means of introducing theorems. Further, we extract the target function values from these models using LINGO programming, with the help of a case study.