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A New Input-Oriented Plant Capacity Notion: Definition and Empirical Comparison

Author

Listed:
  • Giovanni Cesaroni

    (Department for local development, Prime Minister’s, Rome, Italy)

  • Kristiaan Kerstens

    (CNRS-LEM and IESEG School of Management)

  • Ignace Van de Woestyne

    (KU Leuven, Belgium)

Abstract
Starting from the existing output-oriented plant capacity measure, this paper proposes a new inputoriented plant capacity measure. Furthermore, we empirically illustrate both input- and outputoriented utilisation. In particular, we thereby pay attention to the impact of convexity of the technology on both input- and output-oriented plant capacity measures.

Suggested Citation

  • Giovanni Cesaroni & Kristiaan Kerstens & Ignace Van de Woestyne, 2016. "A New Input-Oriented Plant Capacity Notion: Definition and Empirical Comparison," Working Papers 2016-EQM-08, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:e201608
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    References listed on IDEAS

    as
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    2. Kristiaan Kerstens & Niels Vestergaard & Dale Squires, 2006. "A short-run Johansen industry model for common-pool resources: planning a fishery's industrial capacity to curb overfishing," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(3), pages 361-389, September.
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    4. Bruno De Borger & Kristiaan Kerstens & Diego Prior & Ignace Van de Woestyne, 2013. "Static efficiency decompositions and capacity utilization: integrating economic and technical capacity notions," Applied Economics, Taylor & Francis Journals, vol. 45(24), pages 3529-3529, August.
    5. Tone, Kaoru & Sahoo, Biresh K., 2003. "Scale, indivisibilities and production function in data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 84(2), pages 165-192, May.
    6. Sahoo, Biresh K. & Tone, Kaoru, 2009. "Decomposing capacity utilization in data envelopment analysis: An application to banks in India," European Journal of Operational Research, Elsevier, vol. 195(2), pages 575-594, June.
    7. Valdmanis, Vivian & Bernet, Patrick & Moises, James, 2010. "Hospital capacity, capability, and emergency preparedness," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1628-1634, December.
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    15. Briec, Walter & Kerstens, Kristiaan & Prior, Diego & Van de Woestyne, Ignace, 2010. "Tangency capacity notions based upon the profit and cost functions: A non-parametric approach and a general comparison," Economic Modelling, Elsevier, vol. 27(5), pages 1156-1166, September.
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    Cited by:

    1. Yao-yao Song & Xian-tong Ren & Guo-liang Yang, 2023. "Capacity utilization change over time," Journal of Productivity Analysis, Springer, vol. 59(1), pages 61-78, February.
    2. Kristiaan Kerstens & Ignace Van de Woestyne, 2018. "Enumeration algorithms for FDH directional distance functions under different returns to scale assumptions," Annals of Operations Research, Springer, vol. 271(2), pages 1067-1078, December.
    3. Kristiaan Kerstens & Jafar Sadeghi & Ignace Van de Woestyne, 2020. "Plant capacity notions in a non-parametric framework: a brief review and new graph or non-oriented plant capacities," Annals of Operations Research, Springer, vol. 288(2), pages 837-860, May.
    4. Kristiaan Kerstens & Jafar Sadeghi & Ignace Van de Woestyne, 2019. "Plant Capacity and Attainability: Exploration and Remedies," Operations Research, INFORMS, vol. 67(4), pages 1135-1149, July.
    5. Tao, Xiangyang & An, Qingxian & Goh, Mark, 2024. "Plant capacity utilization with piecewise Cobb-Douglas technology: Definition and interpretation," European Journal of Operational Research, Elsevier, vol. 316(3), pages 1034-1043.
    6. Bo Peng & Rasa Melnikiene & Tomas Balezentis & Giulio Paolo Agnusdei, 2024. "Structural dynamics and sustainability in the agricultural sector: the case of the European Union," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 12(1), pages 1-27, December.
    7. Cesaroni, Giovanni & Kerstens, Kristiaan & Van de Woestyne, Ignace, 2019. "Short- and long-run plant capacity notions: Definitions and comparison," European Journal of Operational Research, Elsevier, vol. 275(1), pages 387-397.
    8. Kristiaan Kerstens & Jafar Sadeghi & Ignace Van de Woestyne & Linjia Zhang, 2022. "Malmquist productivity indices and plant capacity utilisation: new proposals and empirical application," Annals of Operations Research, Springer, vol. 315(1), pages 221-250, August.
    9. Zhuo-wan Liu & Tomas Balezentis & Yao-yao Song & Guo-liang Yang, 2019. "Estimating Capacity Utilization of Chinese State Farms," Sustainability, MDPI, vol. 11(18), pages 1-29, September.
    10. Song, Malin & Zhou, Wenzhuo & Upadhyay, Arvind & Shen, Zhiyang, 2023. "Evaluating hospital performance with plant capacity utilization and machine learning," Journal of Business Research, Elsevier, vol. 159(C).
    11. Subhash C. Ray & John Walden & Lei Chen, 2018. "Economic Measures of Capacity Utilization: A Nonparametric Cost Function Analysis," Working papers 2018-02, University of Connecticut, Department of Economics.
    12. Kristiaan Kerstens & Jafar Sadeghi & Ignace Woestyne & John Walden, 2024. "Short-run Johansen frontier-based industry models: methodological refinements and empirical illustration on fisheries," Journal of Productivity Analysis, Springer, vol. 61(1), pages 47-62, February.
    13. Kristiaan Kerstens & Jafar Sadeghi, 2021. "Plant Capacity Notions: Existence Results at Firm and Industry Levels," Working Papers 2021-EQM-04, IESEG School of Management.
    14. Kerstens, Kristiaan & Sadeghi, Jafar & Van de Woestyne, Ignace, 2019. "Convex and nonconvex input-oriented technical and economic capacity measures: An empirical comparison," European Journal of Operational Research, Elsevier, vol. 276(2), pages 699-709.
    15. Kristiaan KERSTENS & Xiaoqing CHEN, 2022. "Evaluating Horizontal Mergers in Swedish District Courts Using Plant Capacity Concepts: With a Focus on Nonconvexity," Working Papers 2022-EQM-02, IESEG School of Management.
    16. Walter Briec & Kristiaan Kerstens & Ignace Van de Woestyne, 2022. "Nonconvexity in Production and Cost Functions: An Exploratory and Selective Review," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 18, pages 721-754, Springer.
    17. Kerstens, Kristiaan & Shen, Zhiyang, 2021. "Using COVID-19 mortality to select among hospital plant capacity models: An exploratory empirical application to Hubei province," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    18. Fukuyama, Hirofumi & Song, Yao-yao & Ren, Xian-tong & Yang, Guo-liang, 2022. "Using a novel DEA-based model to investigate capacity utilization of Chinese firms," Omega, Elsevier, vol. 106(C).
    19. Mohieddine Rahmouni, 2021. "Determinants of capacity utilisation by firms in developing countries: evidence from Tunisia," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 13(3), pages 212-245.
    20. Ray, Subhash C. & Walden, John & Chen, Lei, 2021. "Economic measures of capacity utilization: A nonparametric short-run cost function analysis," European Journal of Operational Research, Elsevier, vol. 293(1), pages 375-387.

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    Keywords

    efficiency; plant capacity utilisation; convexity;
    All these keywords.

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