Abstract

Assessing the military organization’s performance is an important yet complex issue. It is important to know whether the policy is effective in achieving its goal to advance the operating efficiency; and at the execution level. The aim of this paper is to explore the operating efficiency and the benchmarks of the military outlets by using a non-parametric frontier method: data envelopment analysis. Furthermore, the factor-specific measure and variable returns to scale model are combined together not only to identify the inputs/outputs that are most important but also to distinguish those military outlets which can be treated as benchmarks. The assessment can assist the Ministry of National Defense to improve the military operational management and to help the military outlets in delivering better and efficient services to soldiers, veterans, and their dependents. The potential applications and strengths of DEA in assessing the military organizations are also highlighted.

Key words: Data envelopment analysis, linear programming, military outlet.