Abstract
Data envelopment analysis (DEA) is a method for identifying best practices among peer decision making units (DMUs). An important area of development in recent years has been that devoted to applications wherein DMUs represent network processes. One particular subset of such processes is those in which all the outputs from the first stage become inputs to the second stage. We call these types of DMU structures “two-stage networks”. Existing approaches in modeling efficiency of two-stage networks can be categorized as using either Stackelberg (leader-follower), or cooperative game concepts. There are two types of efficiency decomposition; multiplicative and additive. In multiplicative efficiency decomposition, the overall efficiency is defined as a product of the two individual stages’ efficiency scores, whereas in additive efficiency decomposition, the overall efficiency is defined as a weighted average of the two individual stages’ efficiency scores. We discuss modeling techniques used for solving two-stage network DEA models in linear programs.KeywordsData envelopment analysis (DEA)EfficiencyDecompositionGameIntermediate measureNetworkCooperativeTwo-stage
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.
