Abstract
Previous research on the evaluation of production efficiency cannot effectively respond influences caused by environmental effect and random error. Specifically, most of electric power companies in China suffer from low production efficiency and ineffective evaluation models. However, with the adoption of the proposed three-stage data envelop analysis (DEA) model, reasonable judgments on the investment decision and management level can be reached. Practical investigation has proved that it can help power companies make more objective judgment which would then bring about continuous improvement.
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