Network DEA: A slacks-based measure approach

Tone, Kaoru; Tsutsui, Miki

doi:10.1016/j.ejor.2008.05.027

Cited by 999 publications

(577 citation statements)

References 16 publications

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“…Future research aimed at measuring the efficiency of the Italian water services industry might use a non-oriented three-stage sequential network DEA model able to keep continuity of link flows across all stages and compare results with what emerged from this study, see [76].…”

Section: Limitations and Future Research Streamsmentioning

confidence: 99%

Efficiency, Conflicting Goals and Trade-Offs: A Nonparametric Analysis of the Water and Wastewater Service Industry in Italy

Storto

2018

Sustainability

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This paper presents a benchmarking study of the water and wastewater industry in Italy. A three-stage modeling approach was implemented to measure the efficiency of 53 utility operators. This approach is based on the implementation of network and conventional data envelopment analysis (DEA) to model the production process of the water service utility operators. In comparison to the conventional black-box or one-stage production model generally adopted in previous studies, the proposed approach provides information relative to the different efficiency components of the stages and blocks of the water service production process and its overall efficiency. Further, by shifting the efficiency analysis to a two-dimensional performance space, i.e., resource and market-efficiency, it offers a more comprehensive view of the water service industry and allows accounting for different business goals at the same time and for an investigation of industry trade-offs. Results show that the operators' efficiencies in the Italian water service industry are generally variable and low. There are no water service utilities which are 100% efficient from the resource-efficiency perspective, and the maximum efficiency score is 0.545. Efficiency measurements suggest that there is a general orientation of the Italian water industry to not invest in upgrading and improving the infrastructure assets, and achieving an acceptable efficiency in the operations is critical to delivering water services to market in an efficient way. Only one utility operator is 100% efficient from the market-efficiency perspective. The low tariffs adopted by the water service operators do not allow the gaining of satisfactory service remuneration and the achievement of long-term business sustainability. The joint analysis of the resource and market efficiency scores indicates that there is a trade-off between the corresponding business goals.

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Section: Limitations and Future Research Streamsmentioning

confidence: 99%

Efficiency, Conflicting Goals and Trade-Offs: A Nonparametric Analysis of the Water and Wastewater Service Industry in Italy

Storto

2018

Sustainability

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“…Conversely, quite a few researches focused on general multi-stage network with extra inputs and outputs. As an instance, Tone and Tsutsui proposed a Slacks-Based Measure (SBM) model to measure the system and process e ciencies of a network system with extra inputs and outputs [13]. Kao transformed the nonlinear model into a linear one using a variable substitution technique [14].…”

Section: Literature Reviewmentioning

confidence: 99%

Efficiency assessment of Iranian Handmade Carpet Company by network DEA

Zegordi

Omid

2017

Scientia Iranica

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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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“…By running (6), we can obtain the network DEA efficiency of ten DMUs in the tth time span ( = 1, 2, 3, 4), also (10) Figure 7 reflects the dynamic fluctuation of network DEA efficiency for each DMU over the four time periods, from which we can conclude that the network DEA efficiency of the observed time periods vibrates irregularly. We apply model (9) for the sake of evaluating the overall dynamic network efficiency of DN-DEA on the basis of the DEA structure proposed in Figure 5. The overall dynamic network efficiency and ranking sequence of DN-DEA can be finally provided in Table 5, which can be compared in Figure 8.…”

Section: Numerical Examplementioning

confidence: 99%

“…Thus, it is a simple network model with time parameter, but not real dynamic network DEA model. Fourthly, Tone and Tsutsui [9] dealt with intermediate products formally to evaluate divisional efficiencies along with the overall efficiency of DMUs by a slack-based measure.…”

Section: Introductionmentioning

confidence: 99%

Hybrid Dynamic Network Data Envelopment Analysis

Wang

2015

Discrete Dynamics in Nature and Society

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Conventional DEA models make no hypothesis concerning the internal operations in a static situation. To open the "black box" and work with dynamic assessment issues synchronously, we put forward a hybrid model for evaluating the relative efficiencies of a set of DMUs over an observed time period with a composite of network DEA and dynamic DEA. We vertically deal with intermediate products between divisions with assignable inputs in the network structure and, horizontally, we extend network structure by means of a dynamic pattern with unrelated activities between two succeeding periods. The hybrid dynamic network DEA model proposed in this paper enables us to (i) pry into the internal operations of DEA by another network structure, (ii) obtain dynamic change of period efficiency, and (iii) gain the overall dynamic efficiency of DMUs over the entire observed periods. We finally illustrate the calculation procedure of the proposed approach by a numerical example.

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Network DEA: A slacks-based measure approach

Cited by 999 publications

References 16 publications

Efficiency, Conflicting Goals and Trade-Offs: A Nonparametric Analysis of the Water and Wastewater Service Industry in Italy

Efficiency, Conflicting Goals and Trade-Offs: A Nonparametric Analysis of the Water and Wastewater Service Industry in Italy

Efficiency assessment of Iranian Handmade Carpet Company by network DEA

Hybrid Dynamic Network Data Envelopment Analysis

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