The primary aim of the present study is to consider the performance of two-stage production processes for estimating capacity utilization (CU). In short-run, capacity utilization relies on the capabilities of decision making units in employing fixed production factors. The production factors are being divided into fixed and variable inputs to not only measure but extend this indicator. Then, a modified network DEA model is used to measure the capacity utilization and investigate the intermediate products effects on CU. Finally, a numerical example is provided to indicate the applicability and effectiveness of the present model.
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