Efficiency assessment of Iranian Handmade Carpet Company by network DEA

Abstract

Abstract. Di erent categories of Iranian handmade carpet are produced each year. Due to resource limitation, it is so important for managers to allocate more resources to the most e cient categories. Therefore, the main purpose of this illustration is to consider most e cient types of carpet in production and sales stages. To do so, di erent categories of Iranian handmade carpet are considered as DMUs. This study utilizes network DEA for constructing a model to analyze total and partial e ciencies of Iranian Handmade Carpet Company (IHCC), simultaneously. IHCC consists of three main departments that are working jointly to maximize productivity of the rm; therefore, the case of IHCC is a multi-stage system with shared intermediate variables, extra inputs to the second stage, and undesired outputs. The novelty of this paper is the methodology used for calculating the e ciency, which is based on multi-objective programming. Results of experimental data of IHCC are summarized in order to prepare some brilliant management strategies based on partial and total e ciency scores of di erent carpet categories. Because of the lack of familiar researches in the area of carpet industry e ciency measurement, this research will provide valuable information for decision makers.

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