Evaluating and managing congestion in Chinese production
Abstract
This dissertation is devoted to the analysis of congestion in the context of
its uses in Chinese production. Data Envelopment Analysis is the major tool be
employed for this purpose. Applications to Chinese industry provide concrete
examples of potential uses that can result from the research that will be reported
in this dissertation. Congestion is a severe form of inefficiency in which increases
in inputs result in decreases in outputs. Western approaches are directed to simply
eliminating congestion by reducing inputs but this need not apply in non-western
contexts. China, for instance, must accommodate 16,000,000 to 18,000,000 new
entrants into its labor force each year. For perspective, we might note that former
President Clinton points to the creation of some 10,000,000-12,000,000 new jobs
as a major accomplishment during his 8 years as president. Given the need for
dealing with this huge influx of labor, the Chinese government seems to be
willing to experience some lessening in the output of its industries in exchange for
increased employment of labor.
In this dissertation we develop methods to identify ways in which the
management of congestion can be improved. This makes it possible to reduce the
output decreases that would otherwise occur without reducing the labor inputs
that are identified as congesting. We thus accommodate the twin objectives. (i)
improving the methodologies of DEA and (ii) improving the management of
congestion so that the output reductions which would otherwise be experienced
are diminished.
This leads to further possible ways to deal with congestion and the employment to
which it is related. For instance, we show how to further improve the management
of congestion by identifying possible tradeoffs between input reductions (or
increases) and output increases (or decreases) so that better decisions can be made
in coordinating the two. This leads to still further possibilities since input
reduction in one company or plant may be traded off with input augmentations in
another company or plant in ways that can simultaneously improve both the input
and output performances. All of the methods and concepts developed in this
dissertation are also tested by actual data in selected Chinese industries with
significance of their utilizations.
Department
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