Operational Efficiency

Overview


Performace measurement seeks to create some measure of the efficiency of a firm's production.

The first step in defining efficiency is to define a firm's Production Function, which we summarize here as a function that returns a vector of outputs for a vector of inputs.
{% \vec{outputs} = f(\vec{inputs}) %}

Topics


  • Theoretical Definitions
  • Measuring Inputs
  • Tying Outputs to Inputs