Primal and dual multi-output flexibility measures

摘要: Flexibility is a crucial component of competitive advantage, especially under conditions dynamically changing environments. In this theoretical paper, we present alternative flexibility measures that can be used to calculate the ability production technology accommodate output variations at lower costs. We refine existing short-run multi-output measure long-run using three total cost functions in order capture impact fixed costs on adjustment ability. The proposed new are based definitions function considering various assumptions about decision-making process. derive primal by dual relationships between these and corresponding input distance functions. allow us investigate both different representations technology, thus examine aspects firm’s adjust.