doi: 10.17706/ijapm.2015.5.1.60-66
Malaysian Water Utilities Performance Using Two-Stage DEA
Norbaizura Kamarudin
1
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- 1 Centre for Statistical and Decision Sciences Studies, Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA, 40450 Shah Alam, Selangor DE, Malaysia
- 2 School of Mathematical Sciences, Faculty of Science and Technology, Universiti Kebangsaan Malaysia, 43600 UKM Bangi, Selangor DE, Malaysia.
- 3 Centre for Actuarial Studies, Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA, 40450 Shah Alam, Selangor DE, Malaysia.
Abstract
Most previous studies on the performance of water utility services have adopted the standard data envelopment analysis (DEA) with slight modification. However, there are some loopholes which they have neglected the internal structure of proper measures of the operating performance of water utilities. This study uses a two-stage DEA to measure the performance of water supply services in Malaysia. The first stage uses operating cost and other factors to sustain the water production in terms of length of pipes involved and the number of clients. While in the second stage, the water production will generate revenue due to water delivered or consumed by clients. The two stages are an integrated efficiency model where optimal performance can be measured for both stages at the same time. The model will forms efficiency breakdown for both individual stages and uniquely it provides informative comprehensions compared to the traditional DEA.
Keywords
- Data envelopment analysis
- performance measurement
- water utilities
How to Cite
Norbaizura Kamarudin, Wan Rosmanira Ismail, and Muhammad Azri Mohd, "Malaysian Water Utilities Performance Using Two-Stage DEA," International Journal of Applied Physics and Mathematics, vol. 5, no. 1, pp. 60-66, 2015. https://doi.org/ 10.17706/ijapm.2015.5.1.60-66
Copyright & License
Copyright © 2015 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).