Abstract
Data Envelopment Analysis (DEA) research works have been recently examining production systems with a two-stage network structure. These studies consider system operations that are performed in two stages where intermediate products play dual roles: they are the outputs of the previous stage and inputs to the next stage. This dual role is incompatible with Pareto–Koopmans dominance in activity analysis. Also, disregarding intermediate products in assessing performance of two-stage systems compromises the models. The present work introduces a new production possibility set for two-stage network production systems by considering a convex hull for intermediate products. In addition, new models are introduced for evaluating overall efficiency and divisional efficiency of production units from the Pareto–Koopmans efficiency perspective. The proposed models are developed based on an enhanced Russell graph model for efficiency evaluation of two-stage network production structures with convex hulls for intermediate products. Numerical examples are further provided for illustration purposes.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
