Using DEA and Grey Markovian model to measure the goal cost of petroleum enterprise

Abstract

With the longstanding development of Chinese petroleum enterprises, the control of discovery and exploitation goal cost is becoming a essential problem. Data Envelopment Analysis (DEA) is a linear programming method for measuring the relative efficiency of decision making units where the presence of multiple inputs and outputs makes comparisons difficult. Grey Markovian model has the merits of both grey model and Markov transition probability matrix model. In this paper, DEA and Grey Markovian model are combined to measure the discovery and exploitation goal cost of petroleum enterprise. This method is applied to the cost analysis of Huabei Oil Company of PetroChina, which gives strong support to the feasibility and availability of the study in this paper. © Springer-Verlag Berlin Heidelberg 2007.