Abstract
In this paper the smallest improvement DEA approach to general networks of processes is proposed. The corresponding projection direction is endogenously computed by the model so that the relative distance to the frontier is minimal. Both the cooperative and the non-cooperative scenarios for the intermediate products are considered. For the cooperative case, the computed inefficiency score can be decomposed into the sum of the inefficiency scores of the different processes. For the non-cooperative scenario, an alternative decomposition based on the inefficiency of the different intermediate products is also presented. The proposed approach has been validated on different network DEA configurations.
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